A.P.

MØLLER - MÆRSK A/S

SUSTAINABILITY
REPORT 2016
CONTENTS

INTRODUCTION SHARED VALUE RESPONSIBILITY

01–07 08–19 20–33

Foreword by the CEO  01 Breaking the ship recycling stalemate 10 Our commitment to personal safety 22

Our business 02 Advocating CO2 regulation Understanding human rights

in shipping 14 – impacts and actions 24
Strategy and governance in
a time of transition 04 Inclusive growth through trade 16 Removing barriers to inclusion 28

Materiality beyond the matrix 06 TAX FEATURE30

RISK ASSURANCE AND

34–43
Continuing the fight against corruption
Engaging to mitigate supplier risks
Call for enforcement of
environmental regulations
Ensuring a culture of prevention
PERFORMANCE DATA About the report
This report covers activities in the 2016
44–46 calendar year. Our approach to reporting is
to focus on material issues and activities,
Independent assurance report 44 in line with stakeholder concerns
and relevance in terms of context,
Performance data 45
completeness and balance. We strive for
optimal accuracy, timeliness, clarity and
reliability in the way we communicate.
This report also represents our statutory
statement on social responsibility &
36 underrepresented gender in accordance
with sections §99a & b of the Danish
38 Financial Statements Act.
A.P. Moller - Maersk’s Sustainabiity
40 accounting principles can be downloaded
here: www.maersk.com/sustainability-
42 report-2016-accounting-principles
Previous years’ data and our UN Global
Compact Communications on Progress
table is also available online. Please
visit http://www.maersk.com/en/the-
maersk-group/sustainability/reports

FOREWORD
BY THE CEO
Dear reader,
The 2016 A.P. Moller - Maersk Sustainability
Report comes at a time of change for us and
the industries in which we operate. Among
low economic growth rates, increasing
pressures on the concept of free trade and
changes in energy consumption, we have
responded with a whole new strategy for
A.P. Moller - Maersk and its businesses.
In the future, A.P. Moller - Maersk will
focus on global transport and logistics. Our
overall strategic aim is to create a stronger,
more integrated container, logistics, and
ports business. It is the intention that our oil
and oil-related businesses will be separated
from A.P. Møller - Mærsk A/S. The new
strategy, and underlying structure, will
allow us to focus on growth and enhancing
synergies within transport and logistics,
while ensuring the agility of our oil-related
businesses in the pursuit of individual
strategic solutions for future development.
Unlocking sustainable growth
Our commitment to sustainable and
responsible business will not change, and
we remain committed to the United Nations
Global Compact.
We will continue to unlock growth for
societies and our business through new and
better ways of organising trade, providing
access to global markets for still more
people in the world. Global trade delivers
economic benefits to the large majority
of people, and solutions need to be found
to ensure that these benefits extend to all
people. As a business built around global
trade, we will continue to provide data and
research on trade and its societal impacts,
not to mention on-the-ground projects to
test new models for enabling trade. I am
pleased to see that the pilot projects we
launched three years ago are now ready
to be implemented on a larger scale with
the participation and ownership of a wide
group of stakeholders.
A high-level working group established
by then UN Secretary General Ban Ki-Moon,
with the participation of A.P. Moller - Maersk,
describes sustainable transport as
being essential for economic and social
development. Maersk Line demonstrates
that it is possible to decouple business
growth and CO2 emissions. However, it is
becoming increasingly difficult for individual
companies to sustain progress without the
backing of broad industry commitments
Introduction  |  Foreword by the CEO
and regulations. Based on our experience,
we strongly advocate for increased global
regulation of CO2 emissions in the shipping
industry. We were happy to see that the
Paris agreement on Climate Change also led
to renewed momentum in the International
Maritime Organization (IMO), resulting in a
roadmap for long term CO2 reductions. We
will work to help ensure the right level of
ambition is defined by 2018.
Changing an industry
Our decision to invest in upgrading the ship
recycling industry was a source of concern
as well as pride in 2016. We came under fire
from critical stakeholders who believe we
are stepping away from our commitment
to responsible ship recycling. To the
contrary, we are actively stepping up our
commitment to responsible ship recycling
by cooperating with selected, certified
yards in Alang, India.
Significant and independently certified
progress, in terms of both labour and
environmental conditions, was made at the
Shree Ram yard, where two of our vessels
are currently being dismantled. More
yards are signing up to invest in similar
improvements, and we remain convinced
that our activities are the beginning of the
end for the present gridlock in the ship
recycling industry, which currently sees
a vast majority of global tonnage being
recycled at unregulated beach facilities.
Safety will always be our first priority
Although our company is undergoing
far-reaching change, the safety of our
employees is and always will be our very
first priority. Nothing comes before safety.
It is therefore deeply regrettable that two of
our colleagues lost their lives while working
at Maersk-owned port and storage facilities
in 2016. I express my sincere regret and my
sympathies go to the families and friends
who suffered this loss. Such incidents are
simply not acceptable. We will continue our
quest to find ways to prevent fatal accidents
and will not be satisfied until fatalities are
eradicated from our operations.
Søren Skou
CEO of A.P. Moller - Maersk A/S
Sustainability Report 2016 | 01
Introduction | Our business

OUR BUSINESS
In 2016, the Board of Directors took a decision to reorganise A.P. Moller - Maersk in two divisions:
Transport & Logistics and Energy. The integrated Transport & Logistics division has multiple
brands and is a global leader in shipping and ports. The Energy division has four oil and oil-related
businesses, which will continue to be managed and operated as individual entities. Indicators
of performance and examples of where some of our material sustainability issues can occur
across our businesses and value chains are depicted below.

RESOURCES A.P. MOLLER - MAERSK

Invested capital TRANSPORT & LOGISTICS

USD 42.8bn The Transport & Logistics division consists of Maersk Line, APM Terminals, Damco, Svitzer
and Maersk Container Industry. The mission of these businesses is to enable and facilitate
global supply chains and provide opportunities for our customers to trade globally.
Total assets

USD 61.1bn
Enabling trade Ship recycling
Employees p. 16–19 p. 10–13
87,736

Conflict
zones
p. 24–27

Labour standards
Electricity p. 24–27

524 Land
1,000 MWh acquisition
p. 24–27
Fuel oil

10,115 ENERGY
1,000 tonnes
The Energy division consists of Maersk Oil, Maersk Drilling, Maersk Supply Service
and Maersk Tankers. Our Energy businesses support and provide global oil and gas
production as well as offshore marine services.

PARTNERSHIPS

02  |  A.P. Moller - Maersk

 Introduction | Our business

OUTCOMES

Revenue Facilitation GHG emissions

USD 35.5bn payment reduction

36,169
59% 1,000 tonnes CO2 eq.
Result across our businesses p. 14–15

USD -1.9bn p. 36–37

Relative CO2 reduction

Disaster Underlying result

Employee
engagement survey 25%
response
p. 27 USD 0.7bn 76% CO2 eq. 2010 baseline
p. 14–15
favourable
SOx emissions
Fatalities
513
2 1,000 tonnes
p. 22–23 p. 40–41

Oil spills

1
p. 42–43

Security services
p. 24–27
2016 CASH OUTFLOW DISTRIBUTION

Ballast water
p. 40–41
3% 3% 4% 10% 14% 66%
Public sector Shareholders Repayment of Investments Employees Suppliers
(taxes) (dividends) borrowings (net) (salaries) p. 38–39
p. 30–33

UN High-level Advisory Group

on Sustainable Transport

Sustainability Report 2016 | 03

Introduction  |  Strategy & governance

STRATEGY AND
GOVERNANCE IN A
TIME OF TRANSITION
With the changes to A.P. Moller - Maersk’s strategy and organisational structure, our sustainability strategy
and governance structures will need to be updated. The foundational structures remain the same.

The new A.P. Moller - Maersk structure and strategy threshold of mainstreaming and developing all of the The Commit
has made its mark on all corners of the company, projects to scale. governance
as organisational structures, strategic priorities and framework
governance frameworks are being aligned with the Sustainability decision-making A.P. Moller - Maersk’s
new reality of the company. Following the re-organisation of A.P. Moller - Maersk governance system,
One immediate consequence for Maersk’s in 2016, sustainability governance and performance Commit, aims to provide
sustainability work is that a review and update to management tools will undergo a revision as well. clarity and guide employees
on how we work and achieve
our sustainability strategy will be initiated in 2017. However, the existing structures and tools remained our main objectives. The key
In the interim, some adaptations of the 2014 – 2018 in place throughout 2016. mandatory elements in the
Sustainability Strategy have taken effect. A.P. Moller - Maersk’s main governance and framework are:
This strategy focuses on unlocking growth for supervisory body on sustainability is the Sustainability
business and society, by leveraging our capabilities Council, which operates on behalf of the Management Core Values embody
the essence of our core
to deliver impact and drive change within energy Board. The Council is chaired by a Management Board company culture and
efficiency, trade and education. member and has members representing the main provide guidance on our
Due to a change in the business environment businesses within the Transport & Logistics and behaviour to ensure that
for energy, the sector to which the education focus Energy divisions. we make ethically sound
decisions.
was strategically tied, it was determined that In 2016, the Sustainability Council’s work included
the business case for our education activities no the approval of an addition to A.P. Moller - Maersk’s Policies provide guidance
longer exists, and the programme was put on hold ship recycling policy related to the recycling of ships on what we stand for. They
in 2016. sold off prior to end-of-life; discussions of governance govern how we act and
In the area of enabling trade, the work on our and organisational requirements on sustainability in engage with our customers,
colleagues, suppliers and
pilot projects has progressed faster than originally the businesses; and the approval of a position on CO2
society at large.
expected. See pages 16–19. We are already on the emissions from shipping.
Rules are internal
regulations or decision-
making processes for
areas that are relevant
Sustainability governance 2016 from governance and risk
management perspectives.
Management ownership
is clearly assigned for each
Management Board element, and assurance on
policies, rules and values
is carried out on an annual
Commit framework  Sustainability Council  basis.

Programme owners in functional areas Sustainability department

Businesses

04  |  A.P. Moller - Maersk

 Introduction  |  Strategy & governance

Sustainability issues related to UN Global Compact

commitments are governed and managed through
the Commit governance framework, see sidebar on
page 4. Other issues that have been added to the
corporate agenda more recently, or that are primarily
managed through positioning and advocacy, are
governed by the Sustainability Council or the Human
Resources Board. The table below provides an
overview of governance and issue owners. More
information on our policies and positions can be
found at www.maersk.com/sustainability.

Tools for oversight

In 2016, the established tools for oversight and
supervision remained in effect.
• A sustainability dashboard is reviewed by
the Sustainability Council on a semi-annual
basis and provides an overview of progress
and performance on key indicators related to
strategic sustainability priorities and progress on
sustainability integration in the businesses
• The sustainability department conducts CEO reviews
to gauge the businesses’ progress and performance
on sustainability, and to facilitate forward-looking
dialogues with the CEOs on sustainability priorities.
Each business is reviewed every second year.
The outcome of the reviews is reported to the
Sustainability Council and the Management Board

Governance of issues in 2016 – an overview

Issues Guidance framework Issue owner / department

Issues governed through the Commit Framework
Safety Rule on HSE Management Systems Health and Safety Committee

Responsible tax Rule on Tax Compliance and Tax Principles ­(currently under revision) Tax

Anti-corruption Rule on Anti-Corruption Legal

Responsible procurement Rule on Responsible Procurement Procurement

Labour standards Rule on Global Labour Relations Human Resources

Issues governed by the Sustainability Council
Air emissions Position on SOx Maersk Maritime Technology

Ballast water Position on Ballast Water Maersk Maritime Technology

Ship recycling Responsible Ship Recycling Standard Sustainability

Climate change/CO2 emissions Climate Change Position Sustainability

Enabling trade Sustainability Strategy Sustainability

Human rights Human Rights Action Plan Sustainability

Issues governed by the HR Board
Diversity & inclusion Diversity & Inclusion Strategy Human Resources

Sustainability Report 2016 | 05

Introduction | Materiality

MATERIALITY
BEYOND THE MATRIX
A new way to assess our material sustainability issues allows us to better understand
each issue and take actions to adequately respond to the challenges presented.

Understanding which issues are material to our
business and our stakeholders is integral to how
we work with sustainability at A.P. Moller - Maersk.
We conducted our first materiality assessment in
2012, and have since updated and published the
materiality matrix on an annual basis. Our strategy
and activities have evolved since then, but we have
found in recent years that the insight provided by
the materiality matrix has become somewhat static,
not fully reflecting nor guiding our approach to
managing material issues.
As a result, we set out to improve the way we
conduct our materiality assessment. Our aim is
to create a richer environment for materiality
that expands our understanding of the issues
involved and our criteria for prioritisation, as well
as provides guidance on how to manage a
particular issue.
The matrix tended to provide us with a slightly
blurred picture of what and why issues were
material to us, as different dimensions of an issue
were compiled in a single expression of importance.

Top material issues in 2016 across the three dimensions of materiality

y
  Responsibility lit  Risk
i
ib

Ri

Where we have a responsibility to prevent Where sustainability issues pose a

ns

sk
Respo

or mitigate risks to society in the form of significant financial or reputational risk

a significant potential negative impact on The three to our business objectives.
people, society or the environment. dimensions of
materiality ISSUES:
ISSUES: Major accident / Oil spill / Chemical spill
Injuries and fatalities
Major non-compliance with
Labour rights in indirect hiring and of corruption regulations
Sha
subcontracted workers r e d va l u e Supplier non-compliance with Third
Diversity & inclusion Party Code of Conduct

Tax practices & transparency
Transport and other services to/from
conflict zones
Land acquisition and resettlement by
linked third parties
  Shared value Uneven playing field in the enforcement
Where we, through our business, have the of global SOx regulations
capacity to pursue and scale solutions
Investment in ballast water systems in
to significant systemic challenges to the
an unclear regulatory environment
benefit of society and, at the same time,
deliver a positive return for the business.

Disaster response ISSUES:

Armed security services Disposal of vessels and rigs for recycling

Reduction of CO2 emissions

Enabling trade

06  |  A.P. Moller - Maersk

 Introduction | Materiality

With the new approach, we are moving away business to explore the opportunities for change and Continuous
from a matrix and towards a model that will provide development. We manage risks through mitigation stakeholder
us with better information about why and how an processes that will reduce the risk to society and to our engagement
issue is material to us and, consequently, how we can business. This is most commonly achieved through Issue owners at A.P. Moller -
best manage it. strong internal processes and training activities. We Maersk continuously engage
manage responsibility issues by limiting their negative with relevant external
Material issues 2016 impacts and ensuring performance improvements. stakeholders. Engagement
occurs as part of daily work
Sustainability issues can be material as a responsibility, and in dedicated fora, of
risk, or shared value. The definition we apply to each Materiality and the SDGs which A.P. Moller - Maersk or
can be seen in the figure on page 6. The United Nations’ Sustainable Development its businesses are members.
The overview of material issues includes only the Goals (SDGs) have been applied in our materiality In addition to our ongoing
top prioritised issues within each dimension. Other assessment this year as an expression of the engagement, in 2016, we
invited representatives from
issues, such as education and waste management, expectations of the global stakeholder community. six external stakeholder
were part of the assessment process but are not Corresponding to our current strategic sustainability groups to our headquarters
included in the overview as they did not come out priorities, we see the greatest potential for positive in Copenhagen for a
as high priority issues. Compared to 2015, other impact at scale through our business on Goals number roundtable discussion. On
the agenda were six topics
issues were reframed, as is the case with what was 8: decent work and economic growth, 9: industry,
selected by us, as well as an
previously defined as process safety. When applying innovation, and infrastructure, and 13: climate action. open forum for additional
the criteria for each of the three dimensions, this area When engaging in global value chains and energy stakeholder concerns.
was seen to constitute a risk specifically linked to major production, our business touches on all 17 SDGs, The topics discussed
accidents and oil spills. Finally, new issues emerged either directly or indirectly. Many of the goals and were biodiversity, waste and
marine litter, the transport
as being material, for example enabling trade, disaster targets cover issues that are already core to our
sector and goods shipped,
response and the use of armed security services. sustainability efforts, including anti-corruption, value chain responsibility
All sustainability issues will have elements labour rights, responsible procurement, diversity and due diligence,
of several or all three dimensions. However, the & inclusion, safety and environment. In each of responsible lobbying, and
identification of a dominant dimension allows for the following chapters, we mark the relationship the positive and negative
impacts of trade.
greater impact in the way we manage issues. between the topic at hand and the SDGs. The participants
We manage shared value opportunities by engaging Our full analysis, comparing our current business included the UNEP World
in partnerships and multi-stakeholder alliances with and sustainability priorities with the 17 Goals and 169 Conservation Monitoring
a view to bringing about change on a broader scale. targets, can be viewed online at www.maersk.com/ Centre, WWF Denmark,
IBIS-Oxfam, International
At the same time, we will take actions in our own sustainability.
Centre for Trade and
Sustainable Development
China, Action Aid Denmark,
and Transparency
Materiality input & assessment criteria International.
The outcome of the
To accommodate our ambition and understanding of the three dimensions of materiality, we have developed roundtable helped to inform
a new process. We will further refine and develop this approach in the coming years. our thinking and materiality
assessment of the issues
in question, and will inform
RESPONSIBILITY SHARED VALUE RISK part of the work to update
our strategy in 2017.
Inputs / • UN Guiding Principles on •  Sustainability strategy •  Risk assessment
considerations ­Business and Human Rights
•  Business strategy •  Input from stakeholders
•  Input from ­stakeholders
•  Input from stakeholders •  External research
• UN Sustainable ­
•  External research
Development Goals
•  External research

Assessment Does society Is there a major Does it have a social

criteria expect us to contribute
to managing the issue?
Do our values require us
to take action?
Does A.P. Moller - Maersk have
significant i­ mpact on an issue?
societal need/challenge?
Is A.P. Moller - Maersk able to
deliver market solutions at scale
through our existing business?
Can we drive collective action
for change within the industry?
or environmental impact?
Does the issue present
a significant financial or
reputational risk to A.P. Moller -
Maersk’s ability to reach its
business objectives?

Sustainability Report 2016 | 07

Shared value

08  |  A.P. Moller - Maersk

 Shared value

SHARED VALUE
– solving systemic challenges
Some global sustainability challenges are particularly related to our business operations and
at the same time in need of collective and collaborative solutions. By taking action in our own
business and establishing partnerships and other alliances, our ambition is to create new
opportunities for progress on systemic challenges.

Issues approached as shared value opportunities share three characteristics:

1. There is a global need for responding to the challenge presented
2. A.P. Moller - Maersk is able to deliver market-based solutions to the challenge and
scale through our business
3. We are able to take the lead in driving collective action for change at a systemic level
across industries and/or a broader coalition of stakeholders

This is the case for the following three issues: Ship recycling, reducing CO2 emissions
in shipping, and enabling trade.

Sustainability Report 2016  |  09

Shared value  |  Ship recycling
BREAKING THE SHIP
RECYCLING STALEMATE
More than three quarters of all vessels
reaching end of life are dismantled on
three beaches in Southeast Asia. This has
been the case for more than 30 years,
despite obvious negative impacts on the
environment, workers’ conditions and rights,
and the local community. A.P. Moller - Maersk
has embarked on a process to change this
situation, starting in Alang, India.
Ten kilometers of beach with the highest tidal
difference in the area has brought old supertankers,
car ferries, container ships and ocean liners to Alang
since the first ship-breaking yard opened here in
1983. High tides carry them onto the beaches and
hundreds of manual labourers dismantle the ships,
as yard owners resell the steel cut out of the vessels.
Controversies over working conditions, workers’
living conditions, and the impact on the environment
have been tied to Alang’s yards. Yet, nearly half of the
world’s ship recycling takes place here.
We are committed to recycling our vessels in a
responsible way when they reach end of life, ensuring
workers’ safety and rights as well as minimising
the environmental impact. Our stakeholders expect
this and it is in line with our values. We have a clear
responsibility to respect human rights.
10  |  A.P. Moller - Maersk
The UN’s Hong Kong Convention, which Main achievements
was negotiated in the International Maritime 2016
Organization (IMO), sets global minimum standards
100%
for safety and environment. Seven years after it
was adopted in 2009, it has still not been ratified by
of workers in Shree Ram
enough countries to come into force. Although the received safety training.
convention does not cover social issues and leaves
ample room for interpretation, it is still important
that the convention is ratified as an established 3
yards approved according
minimum to work from.
to the A.P. Moller - Maersk
A.P. Moller - Maersk also established a policy for
responsible ship recycling
the responsible recycling of ships in 2009, stating standard and ready to
that we will only dismantle our vessels and rigs at receive vessels.
yards that comply with a strict interpretation of the
Hong Kong Convention and who are able and willing
to upgrade to our standard within a short timeframe.
Between 2009–2015 we recycled 40–50 vessels, the
vast majority at facilities in Turkey and China.
On the beaches, nothing changes Related Sustainable
The combination of surplus capacity in the container Development Goals
shipping market together with global demand for
recycled steel will result in more vessels being sent for
recycling in the coming years. This is true for A.P. Moller -
Maersk and for ship owners across the globe.
Today, the majority of the world’s vessels are sent
for recycling where the highest possible price for
the steel can be obtained. This is in shipyards on the
beaches of India, Bangladesh and Pakistan, where low
 Shared value  |  Ship recycling

standards in terms of environmental and workers’ What remains is the lack of progress in ship Mending a gap:
conditions mean lower costs. This enables these yards recycling practices, policies, and standards. This is new requirements
to offer better prices for the vessels than those offered the stalemate that A.P. Moller - Maersk decided that when selling vessels
by competing shipyards with higher standards. we will try to break. In 2015, we began exploring the With the addition of a new
The result is clear: In 2016, 87% of the world’s creation of a third option to be added to the current requirement in September
ships were dismantled on these beaches, despite practices: responsibly dismantling vessels in yards 2016, A.P. Moller - Maersk’s
most large shipping companies having policies on on a beach. Our investigations found that some yards ship recycling policy intends
to minimise the financial
the responsible recycling of their own vessels. Most in Alang had begun to upgrade their facilities to incentive for buyers
company policies do not, however, cover vessels sold comply with the Hong Kong Convention. to recycle our vessels
off just before end of life, and it is highly likely that irresponsibly. Three options
these vessels end up on one of these beaches. Neither How we work are defined in the policy and
the industry, global society, the shipyards nor the From 2016, we have begun working with yards that applicable to any sale of an
A.P. Moller - Maersk vessel:
countries concerned have succeeded in changing this have made these investments. However, our standard • If the value of the ship is
situation. There is no global regulation and neither and effort goes beyond this. When we engage with less than
shipowners nor shipyards have been able to regulate
themselves due to competitive pressures.
a yard in Alang, we want to guarantee that the
yard is not only equipped to work responsibly, but
25%
above the highest recycling
will actually implement the means and practices price, we will not sell
Creating a third option necessary to comply with A.P. Moller - Maersk’s off the ship, but instead
Historically, responsible shipowners have had two Responsible Ship Recycling Standard (RSRS). The recycle it ourselves in
options for the recycling of their vessels. Vessels could RSRS implies: accordance with our policy
• If the value is between
be sent to yards in, for example, China and Turkey for • going beyond the Hong Kong Convention in
responsible recycling, which was typically done for relation to social and anti-corruption issues 25–40%
a small number of vessels. Alternatively, ships could • relying on a strict interpretation of the Hong above the highest recycling
be sold off some time before they reached end of life. Kong Convention in relation to health, safety and price, we require that the
new owner operates the
This would remove shipowners from the decision of environmental issues vessel for at least two
whether or not to take advantage of the very large • Monitoring compliance by having people on the years after the sale, or
difference in recycling prices between the yards in ground at the yard with a contractual right to stop recycles it in accordance
China and Turkey and the yards on the beaches. the work if necessary with our standards
We have realised that limiting our responsibility • If the value is more than
to our own vessels is not enough, and in 2016, we Making progress 40%
added a new requirement to our policy and standard At the end of 2016, two A.P. Moller - Maersk vessels above the highest
on responsible ship recycling concerning the sale had been sent to the Shree Ram yard in Alang. recycling price, there are
no restrictions on the sale
of vessels. The purpose of the amendment is to We are supervising the responsible recycling of these
of the vessel, as there is
eliminate, in nearly all cases, the financial incentive vessels. Our supervisors working at the yards assist no financial incentive
to recycle irresponsibly. See the requirements in the in upgrading practices, processes and facilities in for the buyer to recycle at
sidebar to the right. accordance with our standard. that point in time

Why this ­matters
to ­society
In spite of known and
serious environmental and
social challenges, such as
underpayment of salaries,
unsafe working conditions
and serious environmental
pollution, 87% of the total
gross tonnage scrapped
is sold to non-certified
facilities in ship recycling
yards on beaches in India,
Pakistan and Bangladesh.
Why this ­matters
to A.P. Moller - Maersk
We have a responsibility to
ensure that the recycling
of our vessels is done in a
responsible way. It is also in
our strategic interest that all
vessels in the industry are
being scrapped responsibly
so that the existing
advantage of low standard
scrapping is eliminated from
the market.
Our ­ambitions
To ensure the financially
attractive and responsible
recycling of our own vessels,
and to play a proactive role
in upgrading standards for
all yards in the Alang area
with a view to develop the
entire shipbreaking industry.
Our ­progress
The first two A.P. Moller -
Maersk vessels are
undergoing responsible ship
recycling in Alang, India.
All workers have contracts,
are trained in safety, and
paid minimum wage plus
200% overtime.
Significantly upgraded
housing for all employees.
All blocks are cut to fall
inside the vessel (except
the bow and stern).
Next steps
Upgrade more yards in
India to meet A.P. Moller -
Maersk’s standard.
Ensure greater international
transparency on
shipbreaking policies and
practicies.
Initiate actions for the
improvement of the greater
Alang area.

Sustainability Report 2016 | 11

Shared value  |  Ship recycling

Since sending vessels to the Shree Ram yard in in different types of yards. We will use the results to “ There is a better
Alang for the first time in May 2016, we have seen guide our decisions in the future. safety culture here,
significant progress in several areas: there is drinking
• 70% of the workers have received intensive Engaging other shipowners water, there is
training and instructions from the LR Group in We are encouraged by the speed at which change housing, there is
the UK and India and other qualified training is occuring on the ground in the Shree Ram yard electricity, all of
organisations. The remaining 30% of the workers, in Alang. Yet we also understand that reaching the which is for free for
who perform less dangerous tasks, have also ultimate aim, which is to transform the entire ship the workers and
received training targeted at their tasks breaking industry, will be a lengthy process. In order
there is personal
• As opposed to practices used elsewhere in the to reach that goal, other shipowners need to engage
protection equipment
area, the class-approved ship recycling plan and and provide commercial incentives for more yards
beyond just overalls
dismantling sequence for the yard means that to upgrade. Throughout the year, we engaged with
and a helmet. This
the entire vessel, except the bow and stern, is shipowners, especially from Japan and Europe, an
is all provided by
dismantled on a surface where there is no contact effort we will increase in 2017.
between ship parts and sand or water Engaging in yards on beaches is a challenge
the yard and it is
• Appropriate personal protective equipment is for shipowners in general, as it is connected with the combination of
available and required considerable reputational risk. This is due in part all these things that
• All workers are paid the minimum wage plus to the firm belief of some stakeholders that the makes me want to
200% in overtime payment and they have a dismantling of ships at yards located on beaches work at Shree Ram.”
contract – neither of which is the practice of the can never become responsible. Moreover, many M. D. Arif
industry in the area shipowners have been met with strong criticism — Worker at Shree Ram
• Housing for all of the shipyard’s employees has when using the beach facilities in the past. for the past year

been constructed and significantly upgraded

As part of a tender issued in December 2016, we
awarded contracts for the recycling of four ships to
Shree Ram and Y.S. Investments in Alang. This tender
was the first time we saw ship recyclers compete not
only on price, but also on standards.
The environmental impacts of ship recycling,
whether on beaches or in certified yards in China and
Turkey, are an understudied area. We are currently
undertaking research to understand these impacts
Beginning community engagement
Our commitment and engagement in the Alang
area goes further than the yards we use. There are
still unacceptable shortcomings in the surrounding
infrastructure. One of the most pressing problems
is healthcare and access to proper treatment in the
case of accidents. We are in dialogue with the Indian
Red Cross Society, who run a clinic in the area, on
ways to collaborate on improving conditions. We will
continue and increase our efforts in this area in 2017.

Watchdog criticism of our actions

A.P. Moller - Maersk’s decision to engage with yards on the beach in Alang
has been criticised by some NGOs from the time of its announcement.
The core criticisms raised in 2016 were:
1 When engaging with shipyards in Alang, we were allowing and
paying for practices that were dangerous to people and harmful
to the environment. Some of the practices critics claimed to have
revealed were resolved by the improvement plans agreed between
A.P. Moller - Maersk and Shree Ram. Please read the full text in this
chapter for our response to these allegations
2 On two occassions, vessels and rigs previously owned by
A.P. Moller - Maersk businesses were dismantled on the beaches of
Bangladesh. This was the case for:
• The North Sea Producer, a floating production, storage and
offloading unit formerly owned by A.P. Moller - Maersk FPSOs
and since owned and operated by a joint venture, of which
Maersk owned 50%. The ship was sold for redeployment and
transferred to a buyer in April 2016. The contract stipulated that
if redeployment was not possible, the unit was to be dismantled
responsibly. Yet, in August 2016, we were made aware of the fact
that the North Sea Producer had been sent to a recycling yard in
Bangladesh. We are extremely disappointed with the outcome
of this process, and have therefore terminated all commercial
relations with the buyer
• The contract on 14 chartered container ships known as
Starflotte was terminated ahead of time. An agreement was
negotiated with the owners of the 14 vessels regarding the
termination of the contract and recycling of the ships in return
for compensation. The termination of the agreement indirectly
incentivised the owners to recycle at sub-standard yards in 2013.
We recognise that in this case we regrettably did not live up to
the intention of our recycling policy. To avoid this going forward,
we have added a new requirement to our ship recycling policy to
minimise the financial incentive for buyers to recycle our vessels
irresponsibly. See sidebar on page 11

12  |  A.P. Moller - Maersk


Timeline for A.P. Moller - Maersk
in Alang, India 2015 – 2016
MARCH 2015
A.P. Moller - Maersk’s first
visit to Alang
FEBRUARY 2016
The internal Responsible
Ship Recycling Standard
(RSRS), which goes beyond
the standards set by the
Hong Kong convention, is
published
Independent audits of the
four ship recycling facilities
are carried out
A press release is issued
regarding the intention to
send vessels to Alang for
recycling. The only way to
make a difference for the
industry is by engaging
with vessels on the ground
SEPTEMBER 2016
Three additional facilities
undergo successful audits
by ClassNK in accordance
with the Hong Kong
Convention
DECEMBER 2016
The number of gaps at
the Shree Ram is down to
eleven, ahead of schedule
Contracts for the recycling
of eight ships are awarded
to Shree Ram and Y.S.
Investments in Alang,
India and Jiangyin Xiagang
Changjiang Ship Recycling
in China
Another 18 facilities have
begun talks with ClassNK
to upgrade their yards
DECEMBER 2015
Four ship recycling
facilities in Alang receive
certification by Class NK
documenting that their
standards meet the Hong
Kong convention
MARCH 2016
Commercial negotiations
with the four ship
recycling facilities have
been entered. Shree Ram
plot number 78 is selected
Of 229 elements,
79 gaps are found. An
improvement plan is
outlined to rectify findings
MAY – JUNE 2016
Maersk Wyoming and
Maersk Georgia land on
plot number 78
NOVEMBER 2016
A.P. Moller - Maersk issues
a tender in which five
ship recycling facilities
in India and China were
invited to participate. All
ship recyclers agreed to
the A.P. Moller - Maersk
Responsible Ship Recycling
Standard (RSRS) as a
prerequisite to enter the
tender
Shared value  |  Ship recycling
The A.P. Moller - Maersk standard for responsible recycling
A.P. Moller - Maersk’s responsible ship recycling standard incorporates the Hong
Kong Convention on Safe and Environmentally Sound Recycling of Ships, with
additional demands made particularly in the areas of labour & human rights, anti-
corruption and sub-contractors’ conditions.
For a yard to receive business from A.P. Moller - Maersk, it must comply with the
Hong Kong Convention as certified by an authoritative third party organisation
from the onset. An audit of the facility is subsequently conducted including a gap
analysis leading to an improvement plan with clearly defined actions and timelines.
After the improvement plan is agreed upon, Maersk ships can be recycled at the
yard. All critical requirements must be closed prior to activating the contract,
whereas major and minor gaps can be closed during operations. This is in line with
standard practice in responsible procurement programmes.
Finally, our practice means that we do not rely solely on statements of
compliance and audits, but are represented at the yard to monitor activities directly
throughout the dismantling process.
Yard certified as
able to comply with Audit
Hong Kong convention
Gap
analysis
Improvement plan, incl. clearly
defined actions and timelines,
agreed upon by both parties
All critical findings closed
prior to contract activation
Major and minor gaps
A.P. Moller - Maersk
closed during operations
ships arrive at yard
with Maersk oversight
Sustainability Report 2016 | 13
Shared value | CO2 emissions in shipping

ADVOCATING
CO2 REGULATION
IN SHIPPING
A.P. Moller - Maersk is a key actor in global container shipping and leads
the industry in CO2 reductions. We advocate for global regulation and targets
for the reduction of the shipping industry’s CO2 emissions.

Reducing the CO2 emissions from transport and
logistics is a challenge facing governments and
corporations across the world. In spite of current
progress in producing energy from renewable
sources, the lion’s share of global activity is still
powered by fossil fuels. In the same vein, our
business activities consume or produce these fuels.
International shipping accounts for over 2% of all
CO2 emissions globally.
A.P. Moller - Maersk takes responsibility for
reducing emissions from our activities. CO2 efficiency
is a shared priority for all our businesses. Our target
for relative CO2 reductions is 30% by 2020 across all
businesses. The relative reduction for 2016 was 25%,
compared to the 2010 baseline.
84% of our total CO2 emissions derive from
Maersk Line’s activities. We are a leading player
in the ocean shipping industry and we invest the
majority of our efforts in impacting CO2 reductions
in this area. Maersk Line has a reduction target of
60% per container moved by 2020, compared to 2007. Related Sustainable
In 2016, reductions in CO2 emissions per TEU per km Development Goals
leveled off. The accumulated reduction since 2007
is 42%, and our target for 2020 remains unchanged.
The leveling off of relative CO2 performance this year
is the result of several factors, such as low fuel price
and changes in market conditions, which have led to
slight increases in the average sailing speed, as well
as smaller vessels entering the fleet.
Decoupling under pressure
While we continue to improve our CO2 performance,
the improvement rates are diminishing and the
decoupling of growth in volume transported and CO2
emitted is under pressure. We continue to invest in
innovations in ship design, new and more efficient
vessels, tools for managing shipping networks as
well as collaborating with customers to understand
and reduce the carbon impact of their transport and
logistics activities. However, while the efficiencies

Why this ­matters
to ­society
More severe weather events,
Why this ­matters Our ­ambitions Our ­progress Next steps
to A.P. Moller - Maersk
The effects of climate
Relative CO2 reduction
target of 25% Review activities and future
plans in light of the new

higher death rates among
humans, higher extinction
rates for animals, more
acidic oceans and higher sea
levels are the consequences
of rising temperatures due
to climate change.
change will impact energy
consumption and global
trade patterns. Furthermore,
mitigating CO2 emissions
from shipping will
dramatically change the
way ships are designed and
operated in the long term.
30%
in 2020 compared to 2010
for A.P. Moller - Maersk.
60%
reduction in CO2 per
container moved by 2020
compared to 2007 for
Maersk Line.
relative CO2 reduction for company structure and new
A.P. Moller - Maersk sustainability strategy.
since 2010.
Sustain public engagement in
42%
the area of global regulation
of CO2 emissions from
relative CO2 reduction for
shipping.
Maersk Line since 2007.

14  |  A.P. Moller - Maersk

 Shared value | CO2 emissions in shipping

achieved through these efforts are adequate for Share of total CO2 eq. emissions Learning from
progressing towards our targets, we are reaching Maersk Line’s CO2 emissions constitute the vast majority
each other: Energy
the limits of what we can achieve on our own. of A.P. Moller - Maersk’s total emissions. efficiency at
Maersk Drilling
The need for global regulation For oil-service businesses
It is A.P. Moller - Maersk’s position that the shipping such as Maersk Drilling,
sector now needs global regulation and standards more differentiation has become
than ever, as it is becoming increasingly challenging for much more important
in recent years. Inspired
individual companies to continue to drive significant by the shipping industry,
improvements in CO2 efficiency on their own. 3% 4% 9% 84% Maersk Drilling is applying
As such, we were disappointed to see that Others Maersk Tankers Maersk Oil Maersk Line technologies and knowledge
shipping was not included in the Paris Agreement on that will cut fuel costs for
clients.
Climate Change in 2015. However, in 2016 it became
In 2016, Maersk Drilling
evident that the Paris agreement created new
completed a two-year
momentum for the negotiations in the International individual customer. In 2016, Maersk Line established energy efficiency pilot
Maritime Organisation (IMO) on this subject. In its first Carbon Pact in Asia, when an agreement was project. By installing fuel
October 2016, a road map for addressing emissions signed with Huawei Technologies, establishing a flow and energy metres and
from shipping in the long term was agreed to by IMO commitment to reduce Huawei’s CO2 emissions per software used in shipping,
adapted to a drilling rig, it
members. A.P. Moller - Maersk welcomes this result. container transported with Maersk Line by 18% from was possible to optimise
The next important milestone is to ensure that 2016 to 2020. the use of auxiliary engines,
the preliminary strategy for reductions projected We see the partnership as a strengthening of our pumps, power generators,
to be finalised in 2018 is ambitious and with real relationship with Huawei, a practical tool to bring lighting and work practices.
content. We would like to see it include a long term sustainability elements into purchasing decisions, During the pilot, fuel
consumption was reduced
CO2 reduction trajectory for shipping that establishes and an opportunity to move the sustainability
by 14.2%, which translates
a peak year for emissions as well as outlines a agenda forward in China. into significant annual
universe of measures to be applied. We will engage As part of the Carbon Pacts, both companies savings for the client, as well
proactively throughout 2017 and 2018 on this matter. also pledge to jointly drive transparency and as reductions in CO2 and
establish aligned sustainability reporting metrics, other emissions. During 2016,
the approach and equipment
Sharing commitments with customers ultimately promoting integration of these metrics
were implemented on six
Carbon Pacts are multi-annual sustainability into commercial decision-making processes. more rigs, and Maersk Drilling
partnerships where Maersk Line commits to a CO2­ Currently, Maersk Line has established partnerships has set up incentive-sharing
target specifically tailored to the business of the with 12 customers. partnerships with clients.
Fuel cost is sixth on the
clients’ list of costs related
to drilling.
Maersk Drilling is also
testing slow steaming for
Decoupling volume transported and CO2 emissions transporting rigs as well as
The graph shows actual development in absolute reductions in CO2 ­emissions participating in a research
at growing volumes transported by Maersk Line. project using flywheel
technology for energy
Growth in transported containers (TEUs) storage as part of efforts to
53% lower energy consumption
and CO2-emissions.
25%

0 Partners
2007


18% 21%
2012 2016
Reduction in global CO2 emissions (tonnes)

Sustainability Report 2016 | 15

Shared value  |  Trade & economic development

INCLUSIVE GROWTH
THROUGH TRADE
A.P. Moller - Maersk’s greatest potential
to deliver societal benefits through our
business lies in our deep connection with
international trade. Putting our knowledge
to use enhances opportunities for people,
countries and regions across the globe,
and for our future business.
In an era where the basic concept of globalisation is
being challenged, it follows that some stakeholder
groups also question whether integration in
global trade positively affects the quality of life in
communities around the world. We are strongly
conviced that it does. Conclusive evidence from the
World Bank shows that expanding trade is integral
to growth, which can create more opportunities for
a country and its people. Supported by adequate
policies and public investments, these benefits can
reach all members of a society.
Carrying 15% of goods transported by sea,
operating ports in a wide variety of countries and
providing global logistics services to companies Related Sustainable
large and small, we have first-hand knowledge of Development Goals
the challenges developing economies face when
integrating into the global economy through trade.
In the area of trade, our name carries weight and
our reach allows us to test new ideas for removing
barriers to trade integration and efficiency. Ideas that
can also generate innovative business solutions.
In 2013, we placed the challenge of enabling
trade at the core of A.P. Moller - Maersk’s strategy for
sustainability. Increased participation in global trade
creates economic growth and job opportunities locally.
People around the world can improve their lives, skills
levels, prospects and living standards as a consequence.
Since the launch of our strategy and subsequent
pilot projects in enabling trade, partnerships,
advocacy and innovation have moved the projects
along faster than initially expected. We are already
beginning to scale up the ideas tested.
Progress on projects
Our sustainability strategy defines the route to
enabling trade as initiating pilot projects that

Why this ­matters
to ­society
Alleviating barriers to trade will
provide an estimated growth
potential of USD one trillion1,
creating development
opportunities for countries
and people.
Why this ­matters
to A.P. Moller - Maersk
With more than 75% of
A.P. Moller - Maersk’s
commercial activities related
to global trade, supporting its
development and growth is
essential to us.
Our ­ambitions Our ­progress Next steps
We will enable trade through All of the four pilot projects Review of activities and
building partnerships are moving towards future plans in light of the
outside our own sector implementation at scale new company structure and
that alleviate trade barriers, See table on page 17. new sustainability strategy.
allowing us to promote
opportunities for growth
beyond those provided by
our everyday business.

1  “Payoff from the World Trade Agenda 2013”, Peterson Institute for International Economics, 2013

16  |  A.P. Moller - Maersk


Overview of enabling trade pilot projects
TRANSPORT AND LOGISTICS INFORMATION PIPELINE
Objective and partner(s)
Development of a digital transport
and logistics information tool
that reduces the challenges in
communication and documentation
related to shipping, in collaboration
with TradeMark East Africa.
Progress 2016
The project left the pilot phase, and a
scalable IT-solution is being prepared
in collaboration with IBM.
Large-scale testing is under way in
Kenya, and new international partners
have been brought on board.
BITUNG – FROM OUT-PORT TO MODEL PORT
Objective and partner(s)
Collaboration with the Government
of Indonesia to realise the economic
potential of Bitung and develop the
area into a model port for possible
replication. Focus on reducing supply
chain obstacles using tuna and
coconut as test commodities.
Progress 2016
The partnership succeeded in
its efforts to reduce barriers to
trade by making the processing
of trade documentation available
locally, negotiating for new fishing
licenses, introducing new processing
technologies that increase the
value and export opportunities for
coconuts, construction of a new
container yard at the Bitung port and
launch of new shipping service by
Maersk Line partner Multiline.
Future plans
Development of the tool ready for
distribution and implementation at
scale.
Promotion of the tool as a global
documentation standard.
Potential impact
Significant decrease in time to
market and reduced costs of trade
with potential for increased export
revenue for local firms
Future plans
Continue dialogue with the Indonesian
government on initiatives to regenerate
fishing activities in the Bitung area.
Trading in more commodities and
higher-value products to increase job
creation.
Potential impact
Creation of jobs and new avenues of
income to enable growth in Eastern
Indonesia, which suffers from
decade-long under-development.
There has been a 30% increase in
trade from Bitung in 2016.
Shared value  |  Trade & economic development
CONNECT-AMERICAS
Objective and partner(s)
Empowering small/medium-sized
enterprises (SMEs) in the Americas
to trade through a digital platform
for information sharing and training
on trade regulation, processes and
opportunities. The platform is owned by
the Inter-American Development Bank
who partnered with A.P. Moller - Maersk
and with Google, Alibaba, DHL and Visa.
Progress 2016
An online training programme and
a cost estimator will be rolled out in
Colombia and Mexico in early 2017.
FROMTU – ONE-STOP SHOP MAKING TRADE SIMPLE
Objective and partner(s)
Develop the digital B2B trading
platform, Fromtu, that connects
African sellers with global and intra-
African buyers, allowing them to trade
in a simple and transparent manner.
A.P. Moller - Maersk leads and is the
main investor in this project, working
with the Inter-American Development
Bank and USAid, which provided
initial research funding.
Progress 2016
The project progressed through user
and market research and technical
development of the platform. At
the same time, the organisational
setup took form and dialogues with
potential partners were initiated.
Future plans
Deep integration of the platform
with Maersk Sealand (the
Maersk Line intra-Americas shipping
line) customer network. This will
bring in more users and expand the
reach and impact of the platform,
while at the same time supporting
and delivering added value to
Sealand customers.
Potential impact
Higher economic growth distributed
to more people through increased
participation of SMEs in cross-border
trade in the Americas.
Future plans
Continue development and finalise
platform with launch planned for
2017 in selected markets, beginning
in East Africa.
Potential impact
Fromtu will provide African producers
and traders with the tools to grow
their networks, businesses and
knowledge – especially within the
SME segment. The platform will
simplify the trading journey for buyers
and sellers, thereby contributing to
global development and prosperity by
breaking trade barriers.
Sustainability Report 2016 | 17
Shared value  |  Trade & economic development 
explore ways to alleviate barriers to trade, always in
partnership with local or regional partners.
The table provides an overview of progress
and status for the four initial pilot projects. These
projects are now being scaled up through our
business operations. In terms of sustainability, our
focus is currently on advocacy and research on
breaking down barriers to trade by removing
hidden costs.
Building knowledge to support trade facilitation
In 2013, 160 members of the WTO finalised
negotiations on a Trade Facilitation Agreement,
focusing on processes to expedite the international
transportation of goods and on collaboration
between customs and other authorities2.
Fully implementing the Trade Facilitation
Agreement would reduce worldwide trade costs by
between 12.5 and 17.5%, with lower-income countries
achieving the greatest benefit3. Earlier studies have
Globalisation is being challenged
There is ample evidence that free trade and
globalisation are under pressure and not delivering
equal benefits for all people or societies. Public protests
against new trade agreements, the rise of nationalist
political parties in many countries, and the UK’s vote
to withdraw from the European Union are all palpable
signs of this pressure.
According to the World Trade Organization,
international trade in 2016 will grow at its slowest
pace since 2007. In 2015, Global Trade Alert, an
independent trade-monitoring group, cited at least
644 discriminatory trade measures imposed by the
G20 economies with the U.S. at the forefront. Imports
among the world’s 20 largest economies have fallen
as a share of their gross domestic product for four
consecutive years5.
Two sides to the story
At a stakeholder roundtable meeting conducted at
A.P. Moller - Maersk headquarters in September
2016, trade and the increasingly contentious trade
environment was on the agenda.
“The economic case for trade leaves no room for
uncertainty, and yet trade and globalisation are
coming under increasing pressure,” said Dr. Wallace S.
Cheng, Managing Director of the International Center
for Trade and Sustainable Development, China.
Trade has benefits – such as economic growth,
technology and knowledge transfer, expansion
of markets, supporting peace and stability – and
2 The agreement has not been ratified by the required number of countries, and has thus not entered into force.
3 OECD Trade Facilitation Indicators, 2015
4  “Payoff from the World Trade Agenda 2013”, Peterson Institute for International Economics, 2013
5 Harvard Business Review, October 2016
18  |  A.P. Moller - Maersk
projected a potential 1 trillion USD addition to gross Partners
domestic product globally4.
A.P. Moller - Maersk is on the steering committee
of the WTO Global Alliance for Trade Facilitation
(the Alliance), established in 2015. It combines public
development funds with corporate expertise in trade
to implement trade facilitation reform and further
the ratification of the Trade Facilitation Agreement.
A.P. Moller - Maersk’s particular contribution to
this partnership consists of studies based on a model
developed by us for establishing the total transport
and logistics costs. See the case on page 19 on a study
conducted in India. The key concept introduced in
this model is that hidden costs in trade can account
for up to half of the total cost. At the same time, it is a
field ripe with potential for cost reductions.
In 2016, the Alliance carried out studies in
Colombia, Vietnam, Kenya and Ghana, of which we The Indonesian
were involved in the latter two. The studies have Government
assessed the total trade and logistics costs, covering
downsides, such as job losses in the home countries “You can show
of the companies that move production offshore, the nuances of
and potential adverse impacts on labour rights
trade impacts.
and environmental issues. What is becoming more
apparent is that globalisation and free trade does not You can use your
benefit everyone equally, and some people not at all. ­business activities
to ensure diffusion
Government initiatives needed of technology,
“Whether the sum total of benefits and downsides
knowledge and
of trade is positive depends not solely on trade itself.
Sustainable development also requires education, management
infrastructure and more,” said Wallace S. Cheng. skills. To me,
This sentiment is echoed by Chad P. Bown, a trade Maersk’s continued
expert at the Peterson Institute for International participation in the
Economics in Washington, who in an interview with
global discussion
the New York Times concluded that while we need to
have trade agreements, “…we do need to be cognisant on trade is crucial
that there are going to be losers, and we need to have to showing the
policies to help them.” benefits of trade.”
It is A.P. Moller - Maersk’s understanding that
globalisation can only begin to work for everyone if Wallace S. Cheng
national governments and international fora take this — International Center
for Trade and Sustainable
challenge upon themselves. Development, China
Wallace S. Cheng also commented on the role that
A.P. Moller - Maersk can play:
“You can show the nuances of trade impacts. You
can use your business activities to ensure diffusion of
technology, knowledge and management skills. To me,
Maersk’s continued participation in the global discussion
on trade is crucial to showing the benefits of trade.”
 Shared value  |  Trade & economic development

“ Businesses and entrepreneurs in many

developing and emerging economies are being
constrained from the global marketplace due
to costly and inefficient border processes.
Governments must consider trade facilitation
reforms as a strategic priority to make trade
work for all.”
Philippe Isler
— Director of the Global Alliance
for Trade Facilitation

not only the direct costs related to transportation, but

also the indirect costs such as spoilage and breakage
costs and a range of potential costs related to
delays. The analyses also provide ideas for possible
interventions, enabling policy makers to act in areas
that yield the most benefits, for example initiatives to
reduce delays and minimise spoilage.

Reducing the hidden costs of transport and logistics in India

Focusing on four export sectors, pharmaceuticals, textiles & garments,
electronics, and auto components, A.P. Moller - Maersk completed a
study in 2016 on the total transport and logistics costs in India. While
there is often much debate about the direct costs of transportation
and logistics, such as terminal rates, freight rates and inland transport
costs, the most significant costs can be the indirect and hidden costs
stemming from delays and inefficiencies.
Reducing these costs is a significant source of potential savings
and improved competitiveness on the part of exporters and importers,
adding to a country’s potential for economic growth and job creation.
The study found that the indirect and hidden costs of trade
accruing from delays and unreliable transportation services amount
to up to nearly half of total transport and logistics costs. Reducing the
costs of trade by 10% has the potential to generate additional exports
of up to 5–8%. This means that within each of the four sectors, making
trade 10% more efficient could potentially generate between USD 0.2bn
and up to USD 3.1bn in extra exports per sector creating new jobs and
income within Indian society, as a whole.
The outcome of the study is a documented understanding of the
total cost of transport and logistics in India, as well as of how our
activities contribute to these. The businesses in A.P. Moller - Maersk
provide services that support our customers in reducing transport
and logistics costs, particularly indirect costs. In 2016, we collaborated
with the Confederation of Indian Industry on further research and
engagement of government and industry leaders in India to prioritise
and initiate possible interventions, with a view to reducing indirect
costs in particular.

… in USD this would translate into:

The study found that the indirect
costs of trade amount to

38 – 47%
of total transport and logistics costs Pharmaceuticals Textiles & garments Electronics Auto components

Exports today,
… reducing the has the potential
USD 11.7bn 38.6bn 9.0bn 4.0bn
costs of trade by to generate up to

10% 5 – 8% Added export

potential,
extra exports USD
0.5–0.9bn 1.9–3.1bn 0.5–1.2bn 0.2–0.3bn

The technical background study was conducted by QBis Consulting

Sustainability Report 2016 | 19

Responsibility

RESPONSIBILITY
– managing our potential impacts on society
For many of our material sustainability issues, our response is primarily determined by a recognition of
responsibility as an employer, a business partner or active participant in local and global communities.
Three factors are in play when we define a responsibility:
1. Our Core Values call on us to act
2. There is a solid expectation from our external stakeholders that we engage
3. Human rights due diligence confirms that we are in fact either causing,
contributing or linked to the issue

The issues included in this section are: The safety of our employees and efforts to prevent serious
injuries and fatalities related to our activities, along with human and labour rights impacts through
indirect hiring, transport to and from conflict zones, armed security services, and the resettlement
of third parties related to our investments, as well as the issues of diversity and inclusion in our
leadership. Finally, there is a special feature on tax practices and transparency.

20  |  A.P. Moller - Maersk

 Responsibility

Sustainability Report 2016  |  21

Responsibility | Safety

OUR COMMITMENT
TO PERSONAL SAFETY
Keeping our employees safe is the greatest (electricity); working at heights; and control of Safety performance
responsibility we have as a business. contractors who enter the terminal. Lost-time injury
frequency per business
Safety performance across our businesses   2016   2015  2014
Across all of our businesses, we want a working The 2016 data on lost-time injury frequency (LTIf)
environment in which safety is deeply embedded in our indicates that some of our businesses improved their Maersk Line
operations and business culture. Our goal is to prevent safety performance, while others showed increases 0.42
Maersk Line
all fatalities and ensure that A.P. Moller - Maersk is a in frequency. There are two reasons for the latter. 0.55
0.42
0.71
safe place to work. At Damco, increased safety awareness has led to 0.55
increased reporting of incidents. For other businesses, 0.71
APM Terminals
Two fatalities in 2016 LTIf has increased as a result of a decrease in exposure APM Terminals
1.53
1.94
Two workers lost their lives as part of our business hours, combined with fluctuations in already low 1.53
1.41
operations in 2016. numbers of lost-time injuries (LTIs). LTIf is calculated 1.94
Fatal accidents are unacceptable to us. When fatal as a function of LTIs relative to exposure hours.
Damco 1.41
Damco
1.04
accidents occur, we work to uncover the root causes Maersk Line achieved an LTIf reduction of 0.63
1.04
and implement preventive measures. 24% through dedicated focus on leadership and 0.43
0.63
In addition to the operating business’ own engagement. Maersk Container Industry saw a Svitzer 0.43
investigation of a fatal accident, A.P. Moller - Maersk’s substantial turnaround in safety performance. This 0.63
Svitzer
Health and Safety Committee reviews the accident and is mainly a result of workers at the factory in Chile 0.53
0.63
its analysis to ensure thoroughness and knowledge gaining more experience, coupled with intensive 1.06
0.53
sharing among our businesses. In 2016, the Committee safety awareness efforts. Maersk Oil continues with Maersk Container
1.06 Industry
found that we can improve our performance by a positive LTIf trend through initiatives such as the 1.90
Maersk Container Industry
strengthening the safety element in onboarding new roll-out of the Front-Line Leadership Program and 2.87
1.90
1.98
employees and contractors’ employees. Control of Work. APM Terminals reduced LTIf by 21% 2.87
Fatalities most often occur in connection with through continued reduction of operational risk, and Maersk Oil 1.98
0.43
APM Terminals’ activities. APM Terminals’ work to the “Fatal Five” programme delivering performance Maersk Oil
0.58
prevent fatalities is guided by a programme entitled improvements in 2016. 0.43
0.73
“Fatal Five” that focuses on the five risk areas In the case of APM Terminals, accidents involving 0.58
Maersk 0.73
Drilling
associated with 90% of fatal injuries that occur in third-party truck drivers on its sites continue to be a 0.49
terminal operations. These are: transportation (the challenge. In response, APM Terminals has set up a Maersk Drilling
0.31
0.49
movement of containers or cargo within the terminal global project that changes operational, process and 0.57
0.31
yard); suspended loads and lifting; stored energy facility lay-out. In addition, more than 100,000 truck Maersk0.57
Supply Service
0.72
Maersk Supply Service
0.11
0.72
0.57
0.11
Fatalities 2016 Maersk 0.57
Tankers
0.40
Maersk Tankers
Business Location Description Employed by 0.13
0.40
0.41
APM Terminals Mexico City, Mexico Security guard died as a result of fall through hatch on security tower Contractor 0.13
0.41
APM Terminals Onne, Nigeria Electrician died as a result of electrocution when connecting cables APM Terminals

22  |  A.P. Moller - Maersk

 Responsibility | Safety

drivers per year receive safety awareness training. pose a potential threat to the safety of our employees. Safety essentials
Good progress was made towards APM Terminals’ This is why A.P. Moller - Maersk has systems in place A.P. Moller - Maersk’s
aspirations to have all truck drivers entering the to mitigate the effects of such threats. work on personal safety
company's facilities remain inside their trucks, and Each of our locations around the world has is based on three safety
the work continues in 2017. developed a set of local security plans and essentials, which form the
basic principles of all safety
mandatory evacuation plans for countries in what
programmes across our
A shared experience are defined as risk areas. We did not have to evacuate businesses. Based on these,
The Global Safety Day at A.P. Moller - Maersk coincides offices in 2016. Travel related risks are managed each business designs its
with the ILO-designated World Day for Safety and through a system that tracks all employees during own safety programme with
Health at Work. In 2016, a global communication travel based on their ticket purchases, as we did for activities and messages
directed at employees and
package including a message from the CEO prepared employees on business travel in Turkey during the
relevant to the specifics of
the organisation for work with the theme “Safe attempted coup in July 2016. its operations and culture.
for you – safe for me”. This translated into various A security incident reporting system was rolled
activities, including: Maersk Line’s focus on cargo out across A.P. Moller - Maersk businesses in the
fires and preparedness; gamification of safety second half of 2016.
training through an online video and quiz for Svitzer; Maersk Line experienced three hijacking attempts We all have
and locally adapted drills and risk identification off the coast of Nigeria in 2016, all of which were the responsibility.
activities, as well as personal recognition for safety averted. Safmarine Kuramo was attacked on the 5th If you see a risk, you own it.
leadership behaviour at APM Terminals. of February, Maersk Cotonou on the 19th November,
and Maersk Calabar on the 21st of December.
Ensuring employees’ security A.P. Moller - Maersk contracted security services for
Political upheavals, operating in zones of conflict, passage through these waters in 2016, as the risk of
natural disasters and modern day piracy – all of these piracy was perceived to have increased significantly. We all have the authority.
Stop any unsafe action
or operation.

How we follow up on a fatality

When the security guard fell from a security tower at
Cuautitlán, an inland services facility in Mexico in April
2016, review procedures were set in motion.
In keeping with APM Terminals’ fatality protocol,
the site was locked off and a specialist from the
corporate safety function joined local management
and safety staff to lead the investigation. This and
further investigation by the Health and Safety
Committee showed that the identification of all
hazards was not complete, and that the facility’s safety
system did not cover all non-core activities. Also, the
security guard was employed by a contractor with
whom there was no formal contractual agreement,
and no induction or job training had been performed.
Both towers on the site were locked off
immediately, and corrective measures were put in We all have an obligation.
place: Among these were: initiatives ensuring that safe Look out for each other.
systems of work are in place for non-core tasks;
verification of safe systems of work from contractors
prior to the commencement of work; improved follow
up on near-miss incidents; improvements in training
and safety induction; and improvement contractual
elements. A learning pack and corrective actions were Related Sustainable
shared across the globe. Such actions are mandatory Development Goal
and must be implemented by all other facilities. A
follow-up review was carried out six months after the
incident to verify that all remedial/corrective actions
have been implemented at the site.

Why this ­matters
to ­society
Our commitment to respect
human rights obligates
all employers, through
conventions and legislation,
to prevent work-related
injuries and fatalities.
Why this ­matters
to A.P. Moller - Maersk
Keeping our employees safe
as they perform their work
duties is an integrated part
of our Core Values.
Our ­ambitions
Zero fatalities.
Our ­progress
Two fatal accidents.
Improvements in injury
frequency at some of our
businesses.
Next steps
Continue to drive
improvements in safety
performance across our
organisation.
Focus on personal
safety leadership.
Drive collaboration and
sharing.

Sustainability Report 2016 | 23

Responsibility | Human rights

UNDERSTANDING
HUMAN RIGHTS
– IMPACTS AND ACTIONS
With global activities and a presence in 130 countries around the world, A.P. Moller - Maersk will
inevitably be confronted with human rights issues. When do we have a responsibility to act?

Connection to human rights impacts us. In these cases, however, our ability to influence Complying with
Our assessment of our responsibility for sustainability the impacts is limited and we have a different The UK Modern
issues is based on the United Nations Guiding responsibility. Slavery Act
Principles on Business and Human Rights (UNGPs). The UK Modern Slavery
These principles are recognised by A.P. Moller - Maersk, Due diligence outcomes Act requires commercial
the private sector, NGOs and governments alike. A due diligence process executed throughout our organisations with a certain
Through our own activities, and those of our value chain in 2015 has enabled us to focus on the level of income to prepare
a slavery and human
business associates, we can either cause, contribute most severe issues, and to prioritise these for further trafficking statement every
or be linked to potential adverse impact on one action. See due diligence graphic on page 25. This financial year.
or more human rights. The nature of a given resulted in the identification of 34 issues, which were
relationship helps define our responsibility to act.
For example, A.P. Moller - Maersk would have the
consolidated into the following areas:
• Assets under construction (including ship yards 17
A.P. Moller - Maersk
potential to cause negative impact on human health, and construction sites)
business entities were
had we not had programmes in place to ensure the • Asset disposal and decommissioning
required to publish a
safety of our employees. Here, we have influence as •  Use of armed security services in high risk settings statement describing our
well as a clear responsibility to act. At the other end •  Transport services to and from conflict settings policies and procedures that
of the scale, our global presence in shipping could • Environmental practices near communities mitigate the risk of slavery
potentially lead to us being linked to the adverse and fishing areas and human trafficking
taking place in any of its
human rights impacts of goods transported by •  Health and safety supply chains and in any
part of its own business.

See http://www.maersk.com/
Three ways A.P. Moller - Maersk may be involved with human rights impacts en/the-maersk-group/
sustainability/human-rights

CAUSE CONTRIBUTION LINKAGE

Third Third
Human Rights party Human Rights party Human Rights
A.P. Moller - Maersk impacts impacts impacts

Related Sustainable
A.P. Moller - Maersk
Development Goal
A.P. Moller - Maersk

Example: Impacts on seafarers’ Example: Impacts through Example: Links to impacts through
safety and security our supply chain transportation services of certain
types of cargo

24  |  A.P. Moller - Maersk

 Responsibility | Human rights

Due diligence process Subcontractors

The due diligence process was carried out with support and input from the Danish Institute for Human Rights. The majority in Indonesia
of the 109 issues identified are already being managed. The five action issues singled out for further action are issues that A Damco warehouse in
are complex and require stakeholder collaboration in order to mitigate the risk of negative impacts. Indonesia hired third-
party workers through a
local contractor between
A.P. Moller - Maersk’s businesses identified activities and relationships
109
HUMAN RIGHTS ISSUE 2012–2016. A government
with the greatest potential for us to cause, contribute or be linked to
IDENTIFICATION investigation showed that
severe issues. Aggregation and removal of redundancies, as well as the
ISSUES the workers were not paid
elimination of highly unlikely issues, reduced this list to:
the minimum wage or
provided with mandatory
The list was validated with A.P. Moller - Maersk’s businesses, and social security. In the end,
CALIBRATION
43 through consultation with business and human rights experts.
Removing the least severe issues, the list consisted of:
Damco discontinued the
contract. With no admission
ISSUES of legal responsibility,
Damco, out of respect for
the workers in question and
Continuing the analysis of the severity of impacts, the 34 issues were their families, negotiated
PRIORITISATION
BASED ON GAPS 34 prioritised and grouped. The majority of these issues are understood and
managed, for example health and safety in our own operations, prevention
monetary compensation
with two labour unions
ISSUES of oil spills, recruitment and employment conditions of our employees. representing PT TBS workers.
When the process of prioritisation was complete, there were a final: A subsequent analysis
pointed to a gap in due
Looking at governance and management maturity in A.P. Moller - Maersk, diligence and follow-up on
ACTION
5 five issues were prioritised for further action. third party labour contracts.
A programme to train
ISSUES
relevant staff in responsible
procurement due diligence
and follow-up was initiated.
Per request, A.P. Moller -
Maersk met with
representatives of the
•  Labour relations Across these five issues, there is a concentration of Clean Clothes Campaign
• Displacement and resettlement in relation to potential impacts related to the supply chain for our (CCC) in Denmark, who
were interested in knowing
investments in large infrastructure development assets and to the provision of transport services for what we are doing to
•  Lobbying and government affairs certain types of cargo. In 2016, additional in-depth work prevent similar cases in the
on these issues resulted in the development of new future. CCC is a global NGO
The majority of these issues are already understood risk management measures, standards and action focusing on the garment
industry, and suggested
and managed, for example health and safety in our plans with a view to mitigating potential impacts.
that we look to best
own operations, management of oil spills, recruitment We continue to carry out a due diligence process practices from this sector
and employment conditions of our employees. Other when new programmes are developed. for inspiration.
issues are complex, and efforts and activities to
mitigate the risk of negative impacts on human rights Labour rights in focus
will require collaboration with business partners and It is in our supply chain that risks concerning labour
other stakeholders. Five such issues were singled out rights are predominantly present. We are committed
for further action with a view to closing the gaps in to providing all employees with good and fair labour
their management. See overview on page 26. conditions in order to ensure their welfare and our

Why this ­matters
to ­society
Respect for human rights
contributes to an environment
where people may live
with freedom and dignity.
This enables sustainable
development and prosperity.
Why this ­matters
to A.P. Moller - Maersk
In line with our values,
we want to ensure that
we respect human rights
in our operations as well
as through our business
relations.
Our ­ambitions
Ensure that we conduct our
business in alignment with
the UN Guiding Principles on
Business and Human Rights.
Our ­progress Next steps
Progressed on action plans Strengthen governance
related to 5 priority issues. mechanisms for human
rights.

Sustainability Report 2016 | 25

Responsibility | Human rights

compliance with labour conventions and regulation. The ability of workers to organise and collectively Channels to voice
The labour conditions of workers hired through third bargain over their wages and working conditions is concerns
parties and employees working for companies in our a fundamental human right. Sometimes, however, Internal and external parties
supply chain are one of the five human rights issues labour disputes turn into work stoppages. The continue to have access
prioritised for further action. impact on both workers, their communities and our to reporting human rights
A labour rights self assessment was completed business is considerable, and minimising the risk of concerns related to our
operations or our suppliers,
by the Global Labour Relations Council in 2016, which labour disputes is important to A.P. Moller - Maersk.
contractors, or other
further confirmed the prioritisation of the issue. In 2016, we began a programme to ensure that business partners through
In 2017, we will be launching an awareness the 42 terminals and 56 inland service centres fully A.P. Moller - Maersk’s whistle
campaign across all our businesses for procurement owned by APM Terminals prepared a local vision blower system. Subjects on
and HR functions about third-party labour and strategy for labour relations¹. Furthermore, which reports are accepted
include actions harming
responsibilities. We will also be commencing training labour relations were made part of APM Terminals’ people, their livelihood or
activities in the mandatory procedures for due operating plans for 2016, whereby training was properties, child labour,
diligence and follow-up in relation to the procurement conducted for staff involved in negotiating with human trafficking and
of labour through third-party suppliers. These unions on collective bargaining agreements in forced labour.
efforts will be addressed through our responsible Maersk Supply Service and in APM Terminals’
procurement programme. See pages 38 – 39. operations in India.

Human rights priority issues: Closing the gaps

ASSETS UNDER INDIRECT HIRING TRANSPORTATION AND USE OF SECURITY ECONOMIC

CONSTRUCTION AND RECRUITMENT SERVICES TO/FROM SERVICES IN HIGH RISK DISPLACEMENT AND
CONFLICT ZONES SETTINGS RESETTLEMENT

At stake At stake At stake At stake At stake

The safety and employment
conditions of sub-contracted
workers building vessels,
rigs, and terminals can
result in workers being
injured, not paid a wage that
is in compliance with local
regulations or other types
of human rights abuses.
A gap in our governance
of supplier relationships
needs to be closed.
2016 activities & results
Subcontractor
requirements have been
embedded in an existing
programme managed by
the teams building and
managing relationships
with asset suppliers.
Risk management
measures have been
activated, for example
through contract clauses
and other agreements
with suppliers granting
us the right to audit sub-
contractor conditions.
Read more in chapter on
responsible procurement
on pages 38 – 39.
Recruiting workers and crew
through third parties (hiring
and employment agencies,
local agents or partners),
can link A.P. Moller - Maersk
to negative human rights
impacts if the third party
involved does not provide
adequate conditions and
terms for the workers, for
example paying minimum
wage, allowing for freedom
of organisation or offering
social services. A gap in
the governance of these
relationships needs to be
closed.
2016 activities & results
A.P. Moller - Maersk’s
Global Labour Relations
Programme has conducted
further analysis of the
issue and will be launching
awareness campaigns
and training in 2017. Our
responsible procurement
programme has also
initiated training activities
in this area. See section
in this chapter on labour
rights.
Our global presence
means we are vulnerable
to being used for improper
and illicit transportation
that may have a negative
impact on human rights.
We need to further assess
options to strengthen the
management of this issue.
2016 activities & results
Maersk Line assessed
screening options within
three high-risk categories:
the transportation of arms,
certain chemicals and
optics. We found that where
cargo descriptions alone
serve as identifiers are those
that are already subject
to regulatory controls.
For other commodities,
the level of information
available to an ocean carrier
is not sufficient to make a
meaningful evaluation.
Maersk Tankers is
exploring its role and
responsibilities in potential
human rights impacts
through the provision of
transportation services.
As part of A.P. Moller -
Maersk’s business
activities, we may use
security services to protect
assets and people involved
in transport and storage
in high risk and conflict
settings. Deployment of
security services serves
as a protection, but may
also have adverse impacts
on human rights such
as violence, coercion or
detaining people against
their will, if not executed
properly. We need to build
a shared approach and
criteria for managing these
relationships.
2016 activities & results
An A.P. Moller - Maersk
standard on the use
and hiring of armed
security services was
developed in 2016, with
implementation and
governance design
to take place in 2017.
A.P. Moller - Maersk may
be linked to adverse
human rights impacts
in connection with the
development of port
terminals or onshore
oil activities, where
land acquisitions and
resettlement are necessary.
These processes could lead
to people being deprived
of their property without
access to a fair and public
hearing. Processes to
ensure that our activities
do not have such negative
impacts should be put in
place.
2016 activities & results
Maersk Oil recently began
involvement in operations
onshore. As part of this
change, an action plan on
how to mitigate human
rights risks related to land
acquisition was prepared.

1 APM Terminals operates 72 terminals and 140 inland service centres. Only entities with full or majority ownership and of a certain size were in scope for this project.

26  |  A.P. Moller - Maersk

 Responsibility | Human rights

What’s in the box?

We acknowledge that there is a link between our transport and logistics
businesses and the potential misuse or abuse of the transported goods.
However, there are legal limitations to what actions we can take. The
first being that we are prohibited from opening the containers.
Increased control of cargo requires a collaborative approach,
enhanced implementation of already existing conventions, as well as
more regulation of goods or tradelanes.
One example of collaboration is the United for Wildlife Transport
Taskforce, of which Maersk Line is a member. In 2016, signatories
from 40 airlines, shipping firms, port operators, customs agencies,
intergovernmental organisations and conservation charities agreed to
adopt a zero-tolerance policy against illegal wildlife trade. Mechanisms
and systems for implementing this decision are under development.

2 Could the cargo be misused and have

1 Is the cargo and transport regulated?
For instance, is trade in the product transported regulated?
Is the country sending or receiving the cargo under sanction?
Is the sender or recipient on a recognised watchlist?
If so, Maersk Line applies screening processes that enable
us to control the cargo, as is the case with weapon
shipments, for example.
negative impacts on human rights?
Examples include electronic equipment, which might be used
for unlawful surveillance, and fertilisers, which might be used
as components in bombs.
Maersk Line does not have the necessary information to
establish the intent of the sender or recipient to be able to
determine potential impacts on human rights.

3 Should we transport cargo

that might be detrimental to
sustainable development?
With no established definitions
of which products would be
in this category, the basis for
possible action is far too weak.

Responding to disaster
On the 4th of October 2016, Hurricane Matthew struck Haiti. Over
140,000 were left homeless while more than 2.1 million people were in
need of urgent humanitarian assistance, including access to quality
water, education, shelter, child protection, health and nutrition.
A.P. Moller - Maersk contributed to the aid effort in Haiti, as part
of the Logistics Emergency Team (LET). This is a cross company
partnership between A.P. Moller - Maersk, Agility, and UPS that
supports the Logistics Cluster led by the UN World Food Programme
in providing global humanitarian relief efforts during natural
disasters.
Our contribution consisted of the free shipping of 33 containers
containing food, shelter toolkits, vehicles, mosquito nets, and other
relief items, as well as lending of forklifts, operators and other services
so that local operations could run more efficiently.

Pictured: Humanitarian relief arriving in Haiti

Sustainability Report 2016 | 27

Responsibility  |  Diversity & inclusion

REMOVING BARRIERS
TO INCLUSION
Everybody working for A.P. Moller - Maersk must have the opportunity to reach his or her
full potential, and we work to remove the unconscious obstacles that may prevent this.

A.P. Moller - Maersk is committed to inclusive
practices in the way we employ, promote and treat
our employees, out of respect for our Core Values
and the human rights of our employees. There is also
business value to be gained: if A.P. Moller - Maersk can
act without bias, we have access to the widest possible
talent pool, not only in terms of recruitment, but also in
terms of our employees’ ideas and talent contributing
to innovation and the development of our business.
Research shows that businesses perform better
when they have diverse teams. For example, McKinsey
has found that the most diverse companies in terms
of gender or race and ethnicity are more likely to have
higher financial returns compared to the middle levels
of returns for companies in their country.¹
encourage the businesses to set clear strategies on Related Sustainable
how they are going to achieve their targets. All but Development Goals
one of our businesses have set such targets and are
establishing ways to reach them.
A core element in the strategies is awareness and
strategies for circumvention of unconscious bias.
Examples of bias are an unconscious preference
for people similar to ourselves or only registering
information that confirms our pre-conceived beliefs.
Research suggests that the best-in-class employment
policies can only go so far in supporting inclusive work
environments. We believe that driving change in our
behaviour by understanding and interrupting bias in
our people processes and decision-making is the key to
truly leveraging the potential of diversity and inclusion.

Small steps forward Training to reduce unconscious bias

While diversity encompasses much more than just
gender and nationality, these are the two areas for
which we have set targets.
In 2016, we closed in on our 2018 targets for the
management levels, while the Board of Directors
remained unchanged. Reaching the targets depends
on the businesses’ decisions when hiring or
promoting at management levels, which is why we
In 2016, we organised workshops for our human
resources community that focused on unconscious
bias awareness. Maersk Oil ran a specific program
for 72 global leaders and their executive teams on
tools to promote and be accountable for inclusion.
Progress continues to be tracked through quarterly
diversity dashboards and employee engagement
survey responses.

Why this ­matters
to ­society
Enabling all people to go as
far as their talent and desire
takes them is important for
creating prosperous societies.
Why this ­matters
to A.P. Moller - Maersk
Attracting and retaining
talented people is highly
important to our business,
as is the chance for all
employees to reach their full
potential in support of the
business.
Our ­ambitions
To support successful
business performance we
want to build a culture of
inclusion where diversity
of thought is valued and
leveraged and all employees
are able to reach their full
potential.
Our ­progress
First steps taken in building
awareness in managing
unconscious bias.
Global maternity and return to
work-policy launched in 2016.
Progress made on targets
for gender and nationality in
leadership positions.
Next steps
Embed unconscious bias
management capability into
our organisation.
Move from diversity to
a focus on inclusion by
building a culture where
diversity of thought is
valued and leveraged to
build organizational success.

1 “Why diversity matters”, Vivian Hunt, Dennis Layton, and Sara Prince, McKinsey, 2015

28  |  A.P. Moller - Maersk

 Responsibility  |  Diversity & inclusion

Global maternity and The new policy includes a global minimum of 18 Targets and
return to work-policy launched weeks maternity leave on full pay for all employees. performance on
To increase the retention of women following In addition, a phased return to work programme diversity and
childbirth or child adoption, A.P. Moller - Maersk has been introduced for all onshore employees inclusion
implemented the Global Maternity Leave and Return with a view to supporting their reintegration to   Target 2019   Target 2018
to Work programmes in April 2016, which improve work following the period of leave. Programme   2016  2015
benefits during and after maternity leave for participants have the opportunity to work 20% less
employees globally. hours at full contractual pay for up to six months Representation of women
Our long-term aspiration is to reach a global within the first year of childbirth or adoption. in leadership positions
best practice maternity retention rate of 90%. For Since the policy was announced, more than Board of Directors
A.P. Moller - Maersk this rate was approximately 500 women have gone on maternity leave, and we 33.3%
70% in 2014. Of the 30% leaving, 80% did so in the will monitor the progress and success of the policy 25%
first 12 months after their return to work. The loss throughout 2017. The new policy has improved the 25%
of knowledge and experience, as well as the cost of terms compared to the statutory minimum in at Executives
replacing these employees, hurts our business. least 51 of the 130 countries in which we operate. 18%
13%
11%
Senior Leaders
New global maternity policy at work 12%
10%
As a result of A.P. Moller - Maersk’s new global policy on 8%
maternity leave, Kalisha Brooks received 18 weeks of
fully paid leave after she had her child in July. Working Leaders
for Maersk Line in the USA, the terms provided before 19%
the new paid parental leave policy in the U.S. would 18%
have offered her only six weeks of paid leave, plus an 16%
additional six weeks of unpaid statutory leave, which
could have been supplemented by paid vacation time. Senior Managers
The new programme meant financial security 27%
throughout her maternity leave. While this was 24%
important, Kalisha Brooks emphasises a different aspect 24%
of the programme as being the main benefit for her:
“Knowing that the business in general and my Representation of non-high
management in particular were committed to and income OECD nationalities
supportive of my decision to stay at home for a full 18 in leadership positions
weeks, assured me that I was a valued member of the
Executives
team and put me at ease.”
12%
Flexibility is key to returning to work 10%
After 18 weeks of paid leave, Kalisha Brooks came 8%
back to work full-time. She decided not to make use of
Senior Leaders
the new policy’s transitional parental leave, however,
12%
which gives primary caregivers additional paid leave
11%
of up to one day per week for 26 weeks, as outlined in
10%
A.P. Moller - Maersk’s paid parental leave policy.
“It is a great option, but I personally don’t feel as if I Leaders
need a fixed agreement on reduced work hours. To me it is 23%
much more important to have flexibility around travelling 21%
and child appointments, and this is what my manager 19%
and I have agreed to focus on,” Kalisha Brooks says.
Senior Managers
At 12 weeks, it seems difficult 35%
Reflecting on the milestones of her maternity leave, 34%
Kalisha Brooks says: “Had I only had 12 weeks leave 32%
and very little flexibility at work, I might have had
to contemplate not going back to work. I know from
friends how difficult it can be to make it work.”

Pictured: Kalisha Brooks and her son

Sustainability Report 2016 | 29

TAX FEATURE

TAX UNDER
THE MICROSCOPE
Public scrutiny and regulatory activities related to corporate tax are on
the rise. A.P. Moller - Maersk has added significant resources and taken
steps to meet the increased requirements.

The tax laws and regulations that apply to multinational businesses, which is mandatory for the 2016 A.P. Moller - Maersk
companies are increasingly complex. Interpretations financial year. tax principles
of tax laws are changing rapidly over time, • In 2016, the EU Commission proposed a directive Living up to our tax
significantly increasing the risk of unintentional imposing a requirement on EU and non-EU principles requires:
non-compliance. A.P. Moller - Maersk recognises this, multinational groups to publish a yearly report • Identifying applicable
and has responded by adding significant resources on the profit and tax charged in EU and tax haven tax laws and regulations,
ensuring compliance with
and centralising the tax organisation to ensure countries.
local requirements and
compliance with laws and regulations. practices, and disclosure
Tax transparency and disclosure has become How tax is managed by A.P. Moller - Maersk of all relevant facts
a focal point for lawmakers and societal debate The starting point for A.P. Moller - Maersk in • Adopting a justifiable and
nationally and globally. A.P. Moller - Maersk is also managing tax is the legislation, both in the form of defendable tax position
where the tax regulations
addressing these requests, which have been put local tax laws and international tax regulations. allow for different
forward to multinational companies. The Board of Directors governs the handling of interpretations or choices
A.P. Moller - Maersk’s tax affairs. In this role, it is the • Ensuring that a technical
Growing expectations and regulation highest approving authority of our tax principles, assessment is made
The call for greater transparency has been translated whereby we commit to comply with all applicable and where appropriate,
obtaining an external
into new regulation, most prominently: rules for tax reporting, as well as for paying taxes opinion for all major
• Danish law now requires disclosure of tax payments and disclosing tax charges. transactions where a tax
on a country-by-country basis in the annual report Tax matters are monitored by the tax department position must be adopted.
of businesses in the extractive industries. Maersk at our corporate headquarters, which also manages A.P. Moller - Maersk will
only adopt a tax position if
Oil discloses such data for the 2016 financial year. country and regional tax centres in key locations.
we are prepared to defend
See http://investor.maersk.com/financials.cfm it in the appropriate
• Regulation based on the OECD’s Base Erosion How we engage in the corporate tax debate tribunals or courts
and Profit Shifting (BEPS) project aims to ensure A.P. Moller - Maersk shares its experiences
that income is taxed in the countries where value and practices with politicians, NGOs and other
is created. We are prepared for this country-by- stakeholders in order to contribute to a broad
country reporting to tax authorities for all our understanding of corporate tax issues.

Total tax charge

(USD million) 2014 2015 2016

Result before tax 5,311 1,447 -843

Total tax charge 2,972 522 1,054

Tax as percentage of profit before tax 56% 36% n/a*

* Despite the consolidated negative result before tax, taxes are still payable in various countries as a result of local profits, ring fencing of oil profits,
timing differences in adjustments and fixed tonnage-based taxes, which also limits the deduction of carry forward operational losses.
Tax charge is the total profit and loss tax.

30  |  A.P. Moller - Maersk

 TAX FEATURE

We follow and participate in the developments in
international and national tax legislation by liaising
with tax authorities, academics and advisors, e.g.
via the International Fiscal Association, the Tax
Commission of the International Chamber of
Commerce and the EU Joint Transfer Pricing Forum.
A.P. Moller - Maersk also contributes to the work of
the UN Committee of Experts on the international
taxation of shipping.
In Denmark, A.P. Moller - Maersk participates
in “The Tax Dialogues”, organised by the NGO
Oxfam IBIS, together with other companies,
ActionAid, investors and academics to develop a
shared understanding on tax, transparency and
responsibility. In 2016, this included participation
in the Conference on Responsible Tax and Global
Competition, attended by more than 100 participants
at our headquarters.

Our businesses and how they are taxed

DAMCO

MAERSK LINE APM TERMINALS MAERSK OIL MAERSK DRILLING

Maersk Line owns or charters
over 700 vessels and three million
containers. It operates offices
in approximately 112 countries.
It has ship-owning companies
outside Denmark, principally in
Singapore, Hong Kong and the
USA, which charter vessels to
Maersk Line in Denmark.
Maersk Line is taxed
where operations are carried
out – centrally in shipowning
companies according to regular
corporate tax regimes or
industry-specific tonnage tax
regimes. In some countries a
special freight tax is levied.
In addition, Maersk Line local
agencies are taxed in accordance
with local corporate tax rules.
Total tax charge (income) in 2016:
USD 20m
DAMCO
Damco is a provider of global
logistics solutions active in
over 100 countries, where it has
operating companies that are each
taxed under the regular corporate
tax rules in the respective
countries of operation.
Total tax charge in 2016: USD 24m
A.P. Moller - Maersk’s terminal
business consists of 72 operating
port and terminal facilities and
140 Inland Services operations in
69 countries. The terminals are
taxed on their activities in the
countries in which they are
located at the corporate tax rates
applied there.
Total tax charge in 2016: USD 149m
SVITZER
Svitzer has a fleet of 430 vessels
operated by individual companies
in the countries in which they
operate. For the most part, they
are taxed under regular corporate
income tax regimes. In some
countries, the companies pay
tonnage tax on their ocean-going
activities.
Total tax charge in 2016: USD 6m
MAERSK CONTAINER
INDUSTRY
Maersk Container Industry
develops and manufactures
refrigerated and dry containers,
and the Star Cool refrigeration
machine. MCI has R&D and
engineering test facilities in
Denmark, with production facilities
in China and Chile. Corporate taxes
are paid where MCI has operations.
Maersk Oil has production in
Qatar, the UK, Algeria, Denmark,
Kazakhstan, and the USA and
Iraqi Kurdistan.
A special hydro carbon tax
regime, or production sharing
agreement, with a higher tax rate
than normal corporate tax rates,
is applied in all of these countries
except Kazakhstan.
For example, in Denmark,
the profits from the oil activity
are taxed at a 25% corporate
tax rate, with a hydrocarbon
surcharge. Profits are taxed
at total of around 64%. In the
UK, the regular corporate tax is
supplemented by a hydrocarbon
surcharge of 10%, and in the US,
the profits from the oil activity
are subject to both corporate
income tax and a royalty.
Total tax charge in 2016: USD 931m
– See the §99c table online at
http://investor.maersk.com/
financials.cfm
MAERSK TANKERS
Maersk Tankers has shipowning
activities in Denmark and
Singapore. The taxation of
Maersk Tankers is similar to
that of Maersk Line, in that the
businesses are subject to local
freight taxes, as well as taxation
on ship-owning activities.
Maersk Drilling owns and operates
24 rigs.
A shore-based company or
branch is set up in the country
where drilling takes place and is
taxed locally on the income from
drilling activities.
The shore-based companies
pay the rig owner (Maersk Drilling
Denmark or Singapore) for rent
of the rig. In Denmark, Maersk
Drilling pays regular corporate tax.
Singapore taxes rigs according to
a regime similar to the tonnage
tax regime applied in shipping.
The rental payment on several
of the rigs is also taxed in the
countries where they are located.
Total tax charge in 2016: USD 3m
MAERSK SUPPLY SERVICE
Maersk Supply Service is a
worldwide owner and operator of
supply ships. The taxation of the
supply activities follows the local
and national regulations in the
country of operation. In addition,
the ship-owning companies
are subject to tax similar to
Maersk Line.
Total tax charge (income) in 2016:
USD 24m

Total tax charge (income) in 2016: Total tax charge in 2016: USD 2m
USD 8m

Sustainability Report 2016 | 31

TAX FEATURE
HOT TOPICS IN
CORPORATE TAX
The majority of the public debate on tax focuses on transparency in relation to
multinational companies’ tax practices. To provide clarity, this section explains
our practices on four of the most discussed tax topics: paying taxes where value
is created, tax havens, tax incentives, and double taxation treaties.
1. Paying taxes where value is created
What is the issue?
Tax laws are predominantly a national matter. The cross-
border element of allocating profits and taxes between
countries within a multinational company is addressed
through transfer pricing regulations. By complying with
transfer pricing regulations, it is possible to ensure that a
multinational’s profits and tax are distributed according to
where value is created.
What does A.P. Moller - Maersk do?
A.P. Moller - Maersk agrees to the principle of paying tax where
value is created and this is also our policy.
In most countries, transfer pricing regulations require
A.P. Moller - Maersk affiliates to document that the pricing of
our operating entities’ transactions with A.P. Moller - Maersk
companies takes place on market terms. For example, we have
obtained an agreement on how much a Maersk Line owned
agency in China should charge Maersk Line in Denmark for
services provided. Tax authorities in both Denmark and China
met to mutually agree on the correct principles.
“ The use of tax planning strategies that exploit gaps and
mismatches in tax rules to artificially shift profits to low or
no-tax locations where there is little or no economic activity
undermines the fairness and integrity of tax systems. It is
of major significance for developing countries due to their
heavy reliance on corporate income tax, particularly from
multinational enterprises.”
— The OECD website on the Base Erosion
and Profit Shifting project
32  |  A.P. Moller - Maersk
2. Tax havens
What is the issue?
Tax havens is a generally accepted term used to describe low-
tax jurisdictions that offer low or no tax to foreign companies.
Often, financial information in such countries is also protected
from scrutiny by the local legislation.
What does A.P. Moller - Maersk do?
A.P. Moller - Maersk is actively present in 130 countries, including
some countries with no or low taxation. It is A.P. Moller - Maersk’s
policy to comply with the tax regulation in the countries in which we
operate, regardless of the local corporate tax rate. We are prepared
for country by country reporting to the relevant tax authorities.
Furthermore, the Danish tax rules require that financial
income from so-called CFC companies (Controlled Foreign
Companies) is taxed in Denmark. The Danish CFC rules have been
put in place to prevent profits from financial income being shifted
to subsidiaries where little or no operational activity takes place.
One example of A.P. Moller - Maersk being present in a
country often named as a tax haven is Panama, where Maersk
Line, Damco and APM Terminals (including inland services)
have significant presence and activities. These companies have
activities in the country, due to its position as a major shipping
destination, centred around the Panama Canal.
“ The overall effect of tax havens is to reduce potential revenues
that can be used to fund vital public services, which often leads
policy makers to rely instead on indirect taxes such as those on
consumption of goods and services – both of which are likely to
hurt people at the bottom of the distribution. Tax haven secrecy
also undermines a range of other policies designed to support
good governance for the wider benefit of societies.”
— Oxfam in its 2016 report “Ending the Era of Tax Havens:
Why the UK government must lead the way”
 TAX FEATURE

Four examples: Total turnover in 2016 (USD) Result before tax in 2016 (USD)
The map shows A.P. Moller - Maersk’s key indicators and tax charges Denmark Morocco Denmark Morocco
in relation to the countries used as examples of the hot topics in
corporate tax, and for our headquarters in Denmark. 27,700m 86m -1,466m 12m
Ghana Panama Ghana Panama

330m 39m 175m 3m

FTE (Full-time equivalents) 2016 Total tax charge in 2016 (USD)

Denmark
Denmark Morocco Denmark Morocco
Morocco
9,771 833 907m 2m
Panama Ghana Ghana Panama Ghana Panama

759 362 32m 1m

3. Tax incentives 4. Double taxation

What is the issue? What is the issue?

Governments seeking to stimulate or attract foreign
investment and growth in certain industries, provide relief
from income taxation in different ways.
What does A.P. Moller - Maersk do?
A.P. Moller - Maersk states in its tax principles that we will
make use of tax incentives where available, but we will only do
this when they are within the intention of the law.
A common incentive is the tax holiday, which is a full
exemption from income tax for a limited period of time.
Tax holidays are often put in place for large infrastructure
investment, as a risk-sharing measure and to ensure
infrastructure development as a platform for growth. The most
recent example of a tax holiday negotiated by A.P. Moller - Maersk
was in Ghana, where APM Terminals is conducting a major
upgrade to the terminal in Tema.
At the end of a negotiated tax holiday, A.P. Moller - Maersk
does not establish new corporate structures to artificially
renew tax holidays.
Governments negotiate agreements on how to allocate taxation
rights over the same income to avoid double taxation. The
resulting tax treaties define how much the source and residence
countries can tax a company’s cross-border income and profits.
What does A.P. Moller - Maersk do?
It is our policy to provide tax authorities with the information
required to evaluate whether A.P. Moller - Maersk is entitled to
treaty benefits. We are of the opinion that tax treaties provide
certainty in the allocation of taxing rights as well as dispute
resolution and we take steps to ensure that our companies are
fully qualified recipients before claiming treaty benefits.
An example is related to the payment of dividends from
Maersk Maroc SA to Damco International A/S. According to
the domestic rules, a withholding tax of 15% applies to the
payment of dividends from a Moroccan company to a foreign
company, in addition to the local corporate tax of 30%. However,
according to the Double Taxation Treaty between Morocco and
Denmark, this rate is reduced to 10%. When the dividends are
paid out, individual shareholders pay a dividends tax.

“ Empirical evidence finds that taxes matter for investment,

although most likely less so in developing countries. Tax incentives’
fiscal cost can be high, reducing opportunities for much-needed
public spending on infrastructure, public services or social support,
or requiring higher taxes on other activities. Transparency [on
tax incentives] is necessary to facilitate accountability and
reduce opportunities for rent seeking and corruption.”
— THE IMF, OECD, UN AND WORLD BANK in research paper
for the G20 Development working group, September 2015
“Whether a capital importing country benefits from signing
a bilateral tax treaty (BTT) depends on whether it realises
sufficient gains from increased foreign direct investment to
offset any revenue loss. The primary benefit that developing
countries seek from signing a BTT is increased inward
investment – an important policy objective – as a result of both
increased certainty and lighter taxation. Against this, however,
by committing to reduced withholding tax rates countries that
are primarily capital importers forego revenue.”
— IMF Policy Paper, Spillovers in International
Corporate Taxation, May 2014

Sustainability Report 2016 | 33

Risk

RISK
– mitigating potential threats to our ambitions
In a sustainability context, risk takes on two meanings: the risk business
activities pose to societies and the people that inhabit them, and the risk
sustainability issues pose to our business objectives.

The issues in this section address both, but are discussed from the perspective
of risk to our business. We performed a risk assessment across all our
businesses. Four issues are included in this category on the basis of their
potentially high impact. These are: corruption, supplier non-compliance with
our Third Party Code of Conduct, an uneven playing field in the enforcement
of global SOx regulations, investment in ballast water systems in an unclear
regulatory environment and major accidents related to spills.

34  |  A.P. Moller - Maersk

 Risk

Sustainability Report 2016  |  35

Risk | Anti-corruption

CONTINUING
THE FIGHT AGAINST
CORRUPTION
Operating in all corners of the world, the
risk of corrupt practices is present in our
businesses. We continue to strengthen
our tools to mitigate this risk.
Non-compliance with corruption regulations is one
of only a handful of sustainability risks deemed to
have major financial impact on A.P. Moller - Maersk.
The likelihood of a major non-compliance occuring
is, however, low, due to the many controls in place to
mitigate the risk, see sidebar.
Throughout 2016, we continued to strengthen our
mitigation framework, with new compliance tools,
systems and processes, such as tools for assessing Related Sustainable
anti-corruption and foreign trade controls risks, Development Goal
automated due diligence systems, best-practice
guidance for avoiding facilitation payments and an
upgraded whistle-blower system.
A.P. Moller - Maersk continues to cooperate with
authorities on ongoing investigations in which there
have been allegations of involvement.
Reduction in facilitation payments
Although the risk of large-scale corruption is low,
our shipping businesses constantly liaise with port
authorities, customs officials and other inspectors.
These encounters can carry a high risk of demands
for facilitation payments.

Why this ­matters
to ­society
Social and economic
development suffers when
corruption is present.
Societies cannot grow and
prosper equitably when fair
business is impeded.
Why this ­matters Our ­ambitions Our ­progress Next steps
to A.P. Moller - Maersk
Failure to mitigate the
To always conduct our
business in an upright 87% Implementation of new
e-learning in 2017.
risk of corruption brings manner and to eliminate reduction in facilitation
both financial and facilitation payments within payments for Maersk Line, Continued focus on
reputational damages the foreseeable future. compared to 2015. facilitation payment
reduction and integration
59%
to A.P. Moller - Maersk.
of compliance into daily
reduction in facilitation operations.
payments across our vessel- Continued compliance
operating and logistics assurance actions.
businesses, compared to
2015.

36  |  A.P. Moller - Maersk

 Risk | Anti-corruption

Mitigating the risks

Whistleblower reports A.P. Moller - Maersk’s anti-
corruption programme
A.P. Moller - Maersk’s whistleblower system was upgraded generally, have factored into an increase in the number includes, among other
in April 2016. At the same time, we updated the guidance of genuine reports and a drop in the number of non- things:
materials for persons making reports, explaining which genuine reports, which should be reported outside the • Due diligence of new
issues are intended for reporting and which are not. We system, such as business proposals and an employee’s agents, joint venture
reiterated that according to EU and Danish laws, the disagreements with a manager. Further, in 2016, two partners, key suppliers,
system may only process reports alleging violations of incidents generated 11 separate reports. Despite this, as well as mergers and
laws or key company policies. The roll-out was promoted there has not been a significant increase in the ratio of acquisitions targets prior
globally on our intranet sites, and we encouraged our substantiated cases overall. to signing of contract
businesses to promote and explain the upgraded system. All reports are investigated using A.P. Moller - Maersk’s • Risk assessments before
These activities, together with increasing employee procedures, and appropriate remedial actions are acquiring a company or
awareness of the importance of compliance issues taken, if substantiated. entering a new country
• Recording all facilitation
payments made and
  2016   2015  2014 working consistently
Total reports in the Genuine whistleblower reports* Whistleblower reports towards eliminating them
whistleblower system alleging corruption** • Ensuring compliance
with rules on travel,
303 87 11
meals, lodging and
298 51 4 entertainment
383 51 13 • Continued global
* Non-genuine whistleblower reports are reports regarding issues that are not within the legal scope and purpose of the whistleblower system.
communication on
** Six reports are unsubstantiated, five are under investigation, none of which have been substantiated. compliance issues,
progress and training
• Management
commitment on all levels
It is our ambition to achieve zero facilitation the development of an OECD-backed project on
payments in the foreseeable future, and progress facilitation payment reduction in selected countries.
is well underway. All of our vessel-operating and We are also a founding member of the Maritime
logistics businesses achieved significant reductions Anti-Corruption Network (MACN). Furthermore,
in facilitation payments compared to 2015: Maersk Maersk businesses participate in a number of
Tankers by 43%, Damco by 45%, Maersk Supply Service projects aimed at eliminating faciliation payments.
by 82%, and Maersk Line by 87%. For Maersk Line, For example, Maersk Line partnered with World
this was driven by a new strategy involving 24-hour Maritime University (WMU), supported by the IMO,
support for vessels, and increased communications in developing and running its first ever course on
and knowledge-sharing between captains. anti-corruption and business integrity, while also
offering to mentor any student that starts an anti-
Collaborating for progress corruption initiative.
A.P. Moller - Maersk works with the Business &
Industry Advisory Committee to the OECD on

Quantifying sustainability risks to our business

A full analysis and overview of our sustainability risk landscape aids us
in understanding how sustainability issues may impact our business.
Issues identified through the risk analysis include: major accidents
related to spills, corruption, supplier non-compliance with our Third
Party Code of Conduct, an uneven playing field in the enforcement of
global SOx regulations and investment in ballast water systems in an
unclear regulatory environment.
The defining characteristic of the issues included in this section
of the report is that they pose not only a risk to society, but also a
significant risk to A.P. Moller - Maersk’s business.
The prioritised risks are those that are assessed as having a
high impact and high likelihood in the dedicated sustainability risk
assessment carried out in 2016, with input from across the businesses.
Performed using classic risk management tools and methodologies,
the assessment resulted in a comprehensive risk register in alignment
with the enterprise risk management system. The long-term ambition
for the sustainability risk register is to also assess all risks for their
reputational impact. In 2016, we developed and tested a scale to assess
reputational risk in collaboration with the Reputation Institute. The
pilot included an assessment of reputational risks in our supply
chain, which we have incorporated into the materiality assessment in
2016. As the reptuational scale is not fully developed, we have not yet
applied it across all issues.
In 2017, we aim to further develop and integrate the reputational
risk scale into our risk assessment of sustainability issues.

Sustainability Report 2016 | 37

Responsibility | Responsible procurement

ENGAGING TO MITIGATE
SUPPLIER RISKS
Our focus on high-risk categories in the supply chain helps us target our risk mitigation.

A.P. Moller - Maersk interacts with thousands of whose commitment to anti-corruption, health and Supplier categories
suppliers around the world. We mitigate the risks safety, labour and human rights and environmental with highest
from these relationships through a responsible management varies. For the audits covering potential impact
procurement programme based on our Third environmental factors, most of the problems relate The 10 categories with
Party Code of Conduct, including due diligence to the management of solid and hazardous waste. the highest risk of
requirements and contract clauses. The governance causing negative social or
and implementation framework for these measures is Engaging with suppliers environmental impact were
determined in 2015 as part
in place and partially integrated across the businesses. in high-risk categories of an assessment process
In 2015, we shifted our focus to supplier Our supplier base spans a large business across all our businesses.*
categories with a high risk of adverse impacts on network from small local enterprises to massive The categories are:
humans an the environment, as well as those that conglomerates with global reach. Out of a global 1. Assets under
are most likely to pose financial and reputational population of 100,000 suppliers, we have contracts construction
risks to our business (See sidebar). with approximately 20,000. Based on our list of high-
2. Manning and crewing
The issues most often included in improvement risk categories, we engage with approximately 1,500 agencies
plans for suppliers are human and labour rights. suppliers from this group through a combination
3. Security companies
Through our responsible procurement programme, of audits, self-assessments and documentation
we have found gaps in our suppliers’ own operations. reviews. Depending on the outcome of these 4. Chemicals and paint
Even more common, however, are weaknesses assessments, we establish improvement plans in 5. Cleaning and canteen
in our suppliers’ management of subcontractors, collaboration with the supplier in question. services
6. Docking and repairs
7. Warehousing and
distribution
Process and performance 2016
8. Promotional items
Shipyards Improvement
9. Logistics and
AUDITS Critical and major Plans
transportation
findings AUDITS
15 13 10. Raw materials

Compliant

Suppliers in
the high-risk
category* 41 32
+/-1,500 Other
Critical and major
findings Improvement
AUDITS

AUDITS Plans
Compliant

283 214 * In addition to this list defined by

Critical and major SELF-ASSESSMENTS A.P. Moller - Maersk’s responsible
procurement programme, the
* excl. trucking Other findings Improvement individual businesses have lists
companies SELF-ASSESSMENTS Plans adapted to their business needs

38  |  A.P. Moller - Maersk

 Responsibility | Responsible procurement

“ Under the contract with Maersk Supply

Service we have focused on safety, for example
through the installation of signage and
extension of the customer’s requirements to
yard contractors. As an incentivising measure,
Maersk Supply Service and COSCO together
established a safety fund that rewards workers
with high health and safety performance. In
combination, this has led to the project we
work on for Maersk Supply Service having the
best safety record in the yard’s history.”
Cheng Gang (程刚)
— Project Commercial Manager,
COSCO (Dalian) Shipyard Co.,Ltd

Due to the shift to a high-risk focus, we are

seeing more audits and assessments performed.
Furthermore, more improvement plans were
closed in 2016, compared to 2015, as a result of
increased collaboration with suppliers. However,
we are still experiencing some delays in closing the
improvement plans, for two main reasons. First,
some items in the plans relate to complex, systemic
issues that we cannot expect our suppliers to solve
on their own. A good example of this is keeping
working hours within the norm set by legislation,
where the limit corresponds poorly with the
culture and wishes of the workers. Second, some repairs differs from the others, as, since 2015, a full Related Sustainable
improvements will take longer to implement than audit and establishment of improvement plans are Development Goal
the duration of our contract with the supplier. For required prior to the signing of contracts.
example, the implementation of a functioning Furthermore, our human rights due diligence
system for working with subcontractors will often process had pointed to the working conditions for
take longer than the timespan of our contracts. migrant and subcontracted labour in shipyards and
construction sites as an area where a more solid
Audits before contracts management approach needed to be established. See
Within the group of high-risk suppliers, the process pages 24–27. Additional measures to improve and
for working with ship yards and suppliers of ship monitor conditions will be identified in 2017.

Why this ­matters
to ­society
Purchasing decisions have
the potential to create
positive environmental,
human and economic
impacts or to maintain poor
standards in the same areas.
Why this ­matters
to A.P. Moller - Maersk
Operating as a responsible
business partner
contributes to mitigating
the environmental and
social risks in our supply
chain, as well as financial
and reputational risks, to
protect our business.
Our ­ambitions
Ensure that we effectively
mitigate the risk of incurring
financial and reputational
damages from our
relationships with suppliers,
as well as strengthening
the resilience of our supply
chain.
Our ­progress
Further implementation of
the programme’s new focus
on suppliers in high-risk
categories.
56 audits performed by
independent auditors or the
Responsible Procurement
team.
31 training workshops for
buyers and HR staff.
Next steps
Continue implementation
of new programme focus
on suppliers in high-risk
categories.
Continue audits at suppliers.
Continue training own
employees, such as category
managers and auditors.

Sustainability Report 2016 | 39

Risk | Environmental regulation

CALL FOR ENFORCEMENT

OF ENVIRONMENTAL
REGULATIONS
Increased regulation of the environmental
impact of vessels is necessary, but
uncertainty regarding technologies and
enforcement regimes carries risks for
shipowners and society.
Ocean-going shipping’s impact on air quality is a
much researched and debated issue. Research has
found that air pollution related to emissions from
international shipping activities is responsible for
premature deaths and increased health costs. Invasive
species alter ecosystems when they are brought to
alien marine environments as part of ocean-going
ships’ ballast water systems, which may also have
societal impacts due to changes in local ecosystems.
Risks to our business and to society Related Sustainable
A.P. Moller - Maersk complies with all applicable Development Goal
regulations related to emissions to air and ballast
water. The primary financial risk to A.P. Moller - Maersk
is not the regulation itself but ensuring a level playing
field and enforcement measures. In the case of ballast
water, the risk is investing in ballast water systems that
may not be compliant with all future global regulations.
The challenge is that compliance comes at a
substantial cost. Complying with the existing limits
on SOx has added substantially to our fuel costs, and
compliance with new global regulation will further
add to this. Installing the necessary ballast water
systems will cost A.P. Moller - Maersk in excess of
300 million USD.
A.P. Moller - Maersk participates and invests
in measures to limit the negative environmental

Why this ­matters
to ­society
Air emissions related
to ocean shipping have
a substantial negative
impact on human health.
Invasive species can affect
the natural environment
negatively.
Why this ­matters
to A.P. Moller - Maersk
We are in a highly
competitive industry and
must ensure that there is a
level playing field in terms of
compliance and enforcement
of environmental regulation
in order to do business.
Our ­ambitions
Advocate for strong
enforcement measures for
the global sulphur cap.
Our ­progress
Working groups on ballast
water treatment and on
SOx established.
Next steps
Actively advocate and
contribute to the enforcement
and compliance agenda for
air emissions in the shipping
and maritime community.
For ballast water, we will
take the necessary steps to
comply with regulations.

40  |  A.P. Moller - Maersk


impacts of our activities. We work to ensure that the
measures proposed hold the potential to achieve
the desired improvements. This is important for our
business and for people and the natural environment
across the globe.
We support transparency and consequences
associated with non-compliance, in order to
incentivise all shipowners to comply and ensure a
level playing field.
State of play for air emissions
A regional cap on the content of sulphur in fuel is
already in place for current emission control areas,
which include the Baltic Sea and the North Sea along
with the English Channel, North American area and
the United States Caribbean Sea area. As far as the
available data shows, the number of cases of gross
non-compliance inside these areas is very low across
the industry.
The financial risk to A.P. Moller - Maersk is related
to a global sulphur cap of 0.5% which the IMO agreed
in 2016 will become effective as of the 1st of January
2020. Ensuring the effectiveness of the global cap
requires monitoring and enforcement on the open
seas. We support this decision but remain concerned
about the availability of enforcement mechanisms.
This concern is also recognised by the IMO, whose
members will begin to investigate options in early
2017. As members of the Trident Alliance, a coalition
of 39 shipowners and operators that have worked
to ensure the robust implementation of sulphur
Risk | Environmental regulation
regulations across the globe since 2014, we will Facts
contribute to this process as much as possible. We The estimated cost of
also support the Trident Alliance’s stance that a installing the necessary
level playing field for the industry is far away, but is ballast water systems
nevertheless necessary if the 0.5% global sulphur cap to comply with future
regulations is in excess
is to have the intended positive impact on human
of USD
health and the environment.
Nitrogen oxides (NOx) are also emitted from fuel
powered engines. Emission controlled areas in the
300m
Baltic Sea, the North Sea and the English Channel
were approved by the IMO in 2016 and will take effect
on the 1st of January 2021 for vessels constructed
on or after that date. The emission controls for
the North American area and the United States
Caribbean Sea area already cover NOx as well as SOx.
Enforcement of NOx regulations does not present the
same challenges as do those for SOx, as compliance is
mainly dependent on the installation of equipment.
Ballast water moving forward
As with all legislation, A.P. Moller - Maersk intends
to comply with the Ballast Water Treatment
Convention, which enters into force on the 8th
of September 2017. We are currently monitoring
the situation closely in order to ensure timely
compliance. This means that all our vessels will be
fitted with a ballast water treatment system when
required by the rules and regulations.
Sustainability Report 2016 | 41
Risk | Process safety

ENSURING A CULTURE
OF PREVENTION
Solid processes and continuous training The risk of a major accident is one of the most Oil spills
mitigate the risk of major accidents occurring significant in our sustainability risk register. If such In January 2016, strong
an incident were to occur, it could be related to the
as part of our operations. Our businesses winds in Izmit, Turkey, led to
nature and location of our operations at high sea, in a tug being called to assist
have comprehensive programmes in place Maersk Ahram. While doing
harsh weather conditions and with heavy duty and
that focus on the prevention of accidents. often complicated equipment and processes involved
so, it accidentally rammed
into the side of the vessel,
in carrying out the work. compromising the hull
The loss of life and damage to the environment and resulting in an oil spill
Some industrial accidents are so large and have are by far the worst consequences of a major of 12.7m3.
such a wide impact that they become household incident. Seen through the lens of risks to our The oil was cleaned up
by a local response team,
names. The Macondo accident, commonly known businesses, the loss of our license to operate would
no damage to natural
under the name “Deepwater Horizon”, where a be extremely damaging as it would make us sanctuaries was found and
hydrocarbon release led to an explosion, resulting in commercially unattractive. no legal implications were
fire, 11 fatalities, many injuries and massive oil spills, To mitigate this risk, we work to prevent incidents incurred.
still hovers over the offshore oil and gas industries. such as blowouts in wells, fires, explosions, ship or rig This was the only
hydrocarbon spill above 10m3
It reminds us of the massive impact on human collisions. Each of our businesses has comprehensive across all our businesses
life, the natural environment, as well as corporate and detailed programmes in place for managing in 2016.
reputations and financial performance that just one these risks, including containment and recovery
case of less than adequate safety processes can have. plans if an accident or spill occurs.

42  |  A.P. Moller - Maersk

 Risk | Process safety

simulators as well as the monitoring of performance. Prevention

In 2016, 10 well control incidents were managed. of oil spills
Towed vessels sunk
Seven out of the ten recorded incidents were related Based on analyses of
On the 22nd of December 2016, two towed to actual influx from formations. All incidents trends in the past three
Maersk Supply Service vessels, Maersk Searcher and were handled according to established well control years’ data, Maersk Line
Maersk Shipper, sank 60 miles off the coast of France. annually determines
procedures and none of the incidents were critical.
The towed vessels were unmanned. Investigations its priorities in oil spill
were still ongoing at the time of this report’s Maersk Tankers focuses on high severity incidents
prevention. In 2016, the
publication. Key conclusions will be communicated such as major oil spills with prevention measures focus was on replacing
upon completion of the incident investigation. embedded in the construction of vessels, procedures, the traditional lubricants
equipment and training of crews. Drills are conducted used in engines with
throughout the year in collaboration with oil spill biogdegradable ones,
which, if released, would
response providers, customers, terminals and other be absorbed by the natural
Safe processes in the oil-related businesses stakeholders, the results of which are reviewed to environment. The switch
Due to the nature of the work involved and intense ensure continuous improvement. Other collaborative was to occur on ships
customer demands for the management of such risks, efforts consist of the development of a risk modelling that came into dock for
maintenance. The target
A.P. Moller -Maersk’s businesses in the energy sector project with industry peers, and a loss-preventative
was set in late February,
have historically focused on process safety risks. project in collaboration with insurers to understand with a goal line of

In recent years, Maersk Oil has reinvigorated
process safety work, to build a learning organisation
that is better equipped to address root causes
discovered through incident investigations. In 2016,
a framework for setting clear expectations for 20
elements of process safety management was launched.
Further to that, a large part of the focus was on training.
Thousands received training in a newly established
set of eight life-saving rules and controls for safety.
Furthermore, 330 frontline technicians were assessed,
resulting in certified vocational qualifications, including
an improved understanding of the processes and risks
involved in their day-to-day tasks and processes.
At Maersk Drilling, there is a constant focus
on well control, which relates to every aspect of
operating at depths of up to 3,650 metres, and drilling
wells more than 12,000 metres deep. Incidents are
typically related to gas, oil, water flowing back into
the drilling system and/or well fluids being released
into the environment. Significant efforts are put into
risk analysis and prevention, training in advanced
80%
and reduce collisions and groundings, whereby the
risk of suffering a major oil spill will be reduced.
of all dockings in 2016, a
Transport & logistics businesses prevent losses target that was reached.
In the shipping-related businesses, the prevention of
high-severity incidents is focused on preventing loss
of lives, cargo and physical assets.
Maersk Line focuses its work in three main areas:
fires in containers, nautical incidents (collisions or
grounding) as well as maintenance and mechanical
failures. As part of the safety strategy for 2015–2017,
Maersk Line established a nautical excellence
programme dealing with equipment usage,
procedures, incident follow-up, knowledge sharing,
training as well as audits, drills and exercises.
During 2016, Maersk Line, APM Terminals and Related Sustainable
Damco investigated possibilities for improved end- Development Goal
to-end control of dangerous goods, for example
explosives, in the container shipping supply chain.
The work focuses on setting standards, training and
risk assessments.

Why this ­matters
to ­society
Accidents resulting from
process safety failure
have serious impacts on
Why this ­matters
to A.P. Moller - Maersk
Process safety prevents
high impact – low likelihood
incidents like fires, major
Our ­ambitions
We want to create an
incident-free environment
for both major spills and fatal
accidents.
Our ­progress Next steps
1 Finalise operational and
functional process safety
oil spill >10m³ across all our mapping.
businesses in 2016.

human health and/or the
environment.
10
spills and explosions. The
risk of human fatalities and
injuries goes against our most well control incidents.
fundamental values. Moreover,
great damage to both
reputation and the bottom
line is the likely result of any
such incident under our name.

Sustainability Report 2016 | 43

Assurance and performance data  |  Assurance
INDEPENDENT
ASSURANCE REPORT
To the Stakeholders of A.P. Møller - Mærsk A/S
We have undertaken a limited assurance engagement on the
A.P. Møller - Mærsk A/S Sustainability Report 2016. A multidisciplinary
team including assurance practitioners, engineers and other experts
have conducted this engagement.
Management’s responsibility
Management Board is responsible for preparation of the 2016
A.P. Møller - Mærsk A/S Sustainability Report in accordance with
Group accounting policies, which can be found at www.maersk.com/
sustainability-report-2016-accounting-principles. This responsibility
includes design, implementation and maintenance of internal control
relevant to the preparation of the sustainability data ensuring that data
are free from material misstatement, whether due to fraud or error.
A.P. Møller - Mærsk A/S’s accounting policies for the Sustainability
Report contain the Management Board’s reasoning for the selection of
topics and indicators as well as defined reporting scope for each data type.
Our Independence and Quality Control
We have complied with the Code of Ethics for Professional Accountants
issued by the International Ethics Standards Board for Accountants,
which includes independence and other requirements founded on
fundamental principles of integrity, objectivity, professional competence
and due care, confidentiality and professional behavior.
PwC applies International Standard on Quality Control 1, and accordingly
maintains a comprehensive system of quality control including documented
policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on data
and information in the 2016 A.P. Møller - Mærsk A/S Sustainability Report
based on the procedures we have performed and the evidence we have
obtained. We conducted our limited assurance engagement in accordance
with International Standard on Assurance Engagements 3000, “Assurance
Engagements other than Audits or Reviews of Historical Financial
Information”. That standard requires that we plan and perform this
engagement to obtain limited assurance about whether the consolidated
social and environmental statement is free from material misstatement.
Copenhagen, 8 February 2017
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 33 77 12 31
Mogens Nørgaard Mogensen
State Authorised Public Accountant State Authorised Public Accountant
44  |  A.P. Moller - Maersk
A limited assurance engagement undertaken in accordance with
ISAE 3000 involves assessing the suitability in the circumstances of
A.P. Møller - Mærsk A/S’s use of stated accounting policies as the basis
for the preparation of the consolidated sustainability data. Furthermore,
it involves assessing the risks of material misstatement, whether due
to fraud or error, responding to the assessed risks as necessary in the
circumstances and evaluating the overall presentation of the consolidated
sustainability data. A limited assurance engagement is substantially less
in scope than a reasonable assurance engagement in relation to both
the risk assessment procedures, including an understanding of internal
control, and the procedures performed in response to the assessed risks.
The procedures we performed were based on our professional judgment
and included:
• Interviews with management at Group and Business Unit level
responsible for the sustainability strategy, management and
reporting
• An assessment of materiality and the selection of topics for the 2016
A.P. Møller - Mærsk A/S Sustainability Report and comparison to the
results of a media search
• Review of reporting guidelines and the results of internal control
procedures at Group level and in three major Business Units
regarding the data to be consolidated in the 2016 Sustainability
Report
• Analytical review of the data and trend explanations submitted by
all business units for consolidation at Group level
• Evaluation of requested internal and external documentation to
determine whether information in the 2016 Sustainability Report is
supported by sufficient evidence
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence
we have obtained, nothing has come to our attention that
causes us not to believe that the 2016 A.P. Møller - Mærsk A/S
Sustainability Report is free of material misstatements and that
Group data are prepared, in all material respects, in accordance
with the stated accounting policies as stated on www.maersk.com/
sustainability-report-2016-accounting-principles.
Gert Fisker Tomczyk
Assurance and performance data  |  Performance data

PERFORMANCE ON SOCIAL,
ENVIRONMENTAL AND ECONOMIC INDICATORS
DAMCO

A.P. Moller - Maersk Maersk Line APM Terminals Damco Svitzer

2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014
Social
performance
Our employees
Number of employees
87,736 88,355 89,207 31,858 32,750 32,622 22,615 21,171 20,639 11,292 11,087 11,313 2,870 2,847 2,723
(FTEs)
Gender – female/total
25 25 23 34 35 36 11 10 10 48 52 38 6 6 6
(% based on FTE)
Women in leadership
16 15 14 17 17 16 15 13 15 30 26 24 24 21 16
(% based on FTE)

Fatalities (headcount) 2 7 11 0 0 1 2 4 10 0 1 0 0 1 0

Lost-time injury frequency

n/a n/a n/a 0.42 0.55 0.71 1.53 1.94 1.41 1.04 0.63 0.43 0.63 0.53 1.06
(based on exposure hours)
Employee engagement
– percentage favourable 76 76 73 76 76 75 79 78 74 75 77 68 77 74 72
(% based on headcount)
Environmental
­performance
Energy consumption
Fuel oil (1,000 tonnes) 10,115 9,455 9,388 9,477 8,858 8,699 4 5 4 0 0 0 57 55 51
Gas fuels (1,000 tonnes) 617 683 651 1 2 4 1 3 1 1 1 4 0 0 0
Other fuels (1,000 tonnes) 289 192 189 8 8 8 200 114 116 3 3 3 0 0 0
Electricity (1,000 MWh) 524 808 794 54 60 63 231 481 468 37 38 38 10 9 10
Energy consumption
454,853 428,874 423,796 387,290 362,405 355,129 8,249 6,189 6,165 300 319 481 2,473 2,373 2,211
(total, TJ)
Greenhouse gas
(GHG) emissions
(1,000 tonnes CO2 eq)
GHG emissions 36,169 33,459 32,808 30,461 27,973 27,332 662 576 574 32 35 44 200 193 181
Direct GHG emissions
35,917 33,044 32,406 30,429 27,935 27,294 573 358 366 11 11 22 196 189 176
(scope 1 GHG Protocol)
Indirect GHG emissions
252 415 402 32 38 38 89 218 208 21 23 22 4 5 5
(scope 2 GHG Protocol)
Other air emissions
(1,000 tonnes)

SOx 513 482 500 489 458 466 0 0 2 0 0 0 0 1 1

NOx 809 755 752 751 702 690 4 2 3 0 0 0 4 4 4
Other resource
consumption
Waste (1,000 tonnes) 226 479 461 125 317 338 24 70 34 5 5 5 1 3 3
Water (1,000 m3) 2,384 4,025 3,730 308 321 345 739 2,249 2,051 237 250 215 36 40 46
Spills
>10 m3 (number of spills) 1 3 n/a 1 1 n/a 0 0 n/a 0 0 n/a 0 1 n/a
Economic
performance
(USD million)
Revenue 35,464 40,308 47,569 20,715 23,729 27,351 4,176 4,240 4,455 2,507 2,740 3,164 642 669 812
Result -1,897 925 5,195 -376 1,303 2,341 438 654 900 31 19 -293 91 120 -270
Underlying result 711 3,071 4,532 -384 1,287 2,199 433 626 849 31 15 -225 89 116 82
Tax 1,054 522 2,972 +20 128 163 149 106 234 24 21 52 6 6 20

  Financial scope. Covered by the Group’s Generally Accepted Accounting Policies and controlling guideline.
  Operational scope. Covered by the Group’s Generally Accepted Accounting Policies.
  Described in the Group’s Generally Accepted Accounting Policies, but data coming from other sources than the financial and operational scoped data.
Financial data is taken from the audited Annual Report of A.P. Moller - Maersk. The annual accounts and independent auditors’ report can be found at http://investor.maersk.com/financials.cfm

45  |  A.P. Moller - Maersk

 Assurance and performance data  |  Performance data

Maersk Oil Maersk Drilling Maersk Supply Maersk Tankers Other businesses Unallocated
Service and eliminations
2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014

4,005 4,427 4,475 3,325 3,965 4,741 1,726 2,066 2,114 2,415 2,366 2,487 6,291 6,392 7,365 1,339 1,284 728

23 23 24 9 9 9 8 8 8 3 3 3 13 11 10 36 38 42

15 14 14 13 9 10 6 3 3 3 3 3 8 6 5 23 23 24

0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

0.43 0.58 0.73 0.49 0.31 0.57 0.72 0.11 0.57 0.40 0.13 0.41 1.84 n/a n/a n/a n/a n/a

67 71 73 79 80 81 68 77 73 77 77 73 n/a n/a n/a n/a n/a n/a

57 65 72 23 17 14 32 54 33 457 392 501 7 8 13 1 1 1

610 674 639 0 0 0 0 0 0 0 0 0 3 3 3 1 0 0
77 65 59 0 0 0 0 0 0 0 0 0 1 2 3 0 0 0
123 112 119 2 2 3 1 1 1 0 0 0 64 102 90 2 3 2

34,745 37,483 36,156 974 731 620 1,354 2,300 1,422 18,707 16,112 20,450 716 916 1,109 45 45 53

3,088 3,064 2,798 79 59 50 109 185 114 1,458 1,260 1,588 76 110 123 4 4 4

3,025 3,006 2,737 78 58 49 109 185 114 1,458 1,259 1,588 36 40 57 2 3 3

63 58 61 1 1 1 0 0 0 0 0 0 40 71 66 2 1 1

2 2 4 0 0 0 0 1 1 22 19 26 0 1 0 0 0 0
8 9 10 2 1 1 2 4 3 36 31 40 2 2 1 0 0 0

15 21 42 1 2 0 3 4 1 17 12 11 33 45 27 2 0 0
474 466 327 14 14 16 56 54 18 176 218 259 334 407 447 10 6 6

0 0 n/a 0 1 n/a 0 0 n/a 0 0 n/a 0 0 n/a 0 0 n/a

4,808 5,639 8,737 2,297 2,517 2,102 386 613 778 877 1,058 1,175 915 1,185 1,480 -1,859 -2,082 -2,485
477 -2,146 -861 -694 751 478 -1,228 147 201 62 160 132 -117 316 408 -581 -399 2,159
497 435 1,035 743 732 471 -44 117 189 58 156 139 – – – – – –
931 175 2,327 3 163 123 +24 10 18 2 1 +1 – – – – – –

Sustainability Report 2016 | 46

STAY UP-TO-DATE
We value your feedback
We welcome any questions, comments or Editor in Chief
­suggestions you might have to this report and Annette Stube
our performance. Please send your feedback to:
Editor
A.P. Moller - Maersk Lene Bjørn Serpa
Esplanaden 50
1098 Copenhagen K Project Manager
Denmark Frances Iris Lu
Att: T&L Sustainability Additional COP content can be found on our
Writer ­website: www.maersk.com/sustainability
You can also send an email to: Eva Harpøth Skjoldborg
sustainability@maersk.com
Design and layout
www.maersk.com/sustainability Extrasmallagency

Photos
Print Pages 8, 9: Tom Lindboe
Printed in Denmark in 2017 by Rosendahls, an Pages 10, 13: Ture Andersen
environmentally certified printing agency, on Page 42: Laurie K. Gilbert 04 5

7
5
1 4
P ri
n t e d m a tt e r0

Galerie Art Silk Rosendahls

Reporting
A.P. Moller - Maersk has tailored its external
financial reporting specifically towards the needs
of our different stakeholders with two annual
publications.
The Annual Report focuses
on the detailed legally required
information, whereas the
A.P. Moller - Maersk Annual
Magazine focuses on providing
an overview of key developments throughout the
year. The publications can be read individually or
combined depending on our stakeholders’ interests.
The Annual Report is available in English at
http://investor.maersk.com/financials.cfm.
The A.P. Moller - Maersk
Annual Magazine provides an
overview of the operations and
performance of A.P. Moller - Maersk
in a concise and easy-to-read
format. The publication is not a
substitute for the Annual Report
and does not contain all the information needed to
give as full an understanding of A.P. Moller - Maersk’s
performance, financial position and future prospects
as that provided by the Annual Report. The
A.P. Moller - Maersk Annual Magazine is available in
hard copy and in English and Danish at
http://investor.maersk.com/financials.cfm.
A.P. Moller - Maersk also
produces Interim Reports for
each of the first three quarters
of the year.
Presentations tailored to
the interests of investors and the financial
markets are also uploaded every quarter.
A.P. Moller - Maersk hosts
a Capital Markets Day on a
regular basis, which can be
followed through a live
webcast and the speakers’
presentation slides can be accessed via links.
The Interim Reports, presentations and
webcasts can be found on our Investor Relations
website: http://investor.maersk.com/
The Board of Directors of A.P. Møller - Mærsk A/S
continues to consider the “Recommendations for
Good Corporate Governance” put forward by
NASDAQ OMX Copenhagen.
Further annual good corporate governance
information is available in the statutory annual
corporate governance statement; cf. 107, item b, of
the Danish Financial Statements Act covering the
financial period 1 January to 31 December.
An independently assured
Sustainability Report is
published and covers all of
A.P. Moller - Maersk’s material
sustainability issues.
The Sustainability website
http://www.maersk.com/
sustainability provides additional information
on the UN Global Compact requirements
describing how A.P. Moller - Maersk fulfills these
(Maersk COP), as well as A.P. Moller - Maersk’s
sustainability accounting principles.
The report contains forward looking statements
on expectations regarding the achievements and
performance of A.P. Møller - Mærsk A/S and
A.P. Moller - Maersk. Such statements are subject
to risks and uncertainties, as various factors, many
of which are beyond A.P. Møller - Mærsk A/S and
A.P. Moller - Maersk’s control, may cause actual
results and development to differ materially from
the expectations contained herein.

News
Online Engage with us
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Maersk.com/press
 A.P. Møller - Mærsk A/S
Sustainability Report 2016

A.P. Møller - Mærsk A/S

Esplanaden 50
DK–1098 Copenhagen K
Tel. +45 33 63 33 63
Company reg. no. 22756214

www.maersk.com